Are Food Coupons Really Taxed at 30%, or Are They Tax-Free for Everyone?

Hi Savitri,

I'm a new member of this site and have been exploring all the topics here for the past 10 days. It's really helpful. Could someone please clarify my doubt?

Are food coupons supposed to be taxed at 30%? Some say they are tax-free for both the employer and the employee.

Thanks in advance,

Savitri M
savitri@manipal.com

Hi Savitri,

It's not taxable for the employee. However, for the employer, it's 10%.

Regards,
Srao
Mumbai

Hi Savitri,

As far as I know, the food coupons are considered an option of the canteen facility, and as such, they remain out of the bounds of the FBT. Therefore, it is a nontaxable item, not by the employer or employee.