Understanding Food Allowance Limits: Does It Change Across Different Industries?

Dear Members,

Please let me know the statutory food allowance that can be provided for employees and does it vary from industry to industry?

Regards,
R&I

Dear Members,

Please let me know the statutory food allowance that can be provided for employees and whether it varies from industry to industry.

Regards,
R&I

You can pay any amount as a food allowance. However, any amounts paid over and above Rs 50 per day are taxable.

Radha

If you give a food allowance in the form of cash, then the entire amount is taxable. However, if you provide the food in the form of coupons, then the maximum amount can be 2200/- per month.

The logic of a 2200/- food coupon is simple. As per the act, you can give a coupon of Rs. 50 per meal. The employer can say that they are providing two meals a day, which makes it 100/- per day. Therefore, a 2200/- food coupon is also tax-free.

Regards,

Amit

Dear Amit,

As per the shift working hours of 8 hours per day, can we say that we provide 2 meals for employees in a day and claim tax-free Rs. 2200 as a food coupon?

Regards,
Prabin

Hi,

I have a query - our organization doesn't provide any food coupons, but can we still claim it by stating that we offer coupons? Do employees or employers need to provide hard copies of food coupons to claim tax rebates?

Regards,
Neha Sharma

Hi Guys,

Earlier, it was 2200/-, but now food coupons above 1250/- are taxable. Please check it and make sure.

Regards,
Rajesh Auchare

Hi friend,

Yes, if you have not provided the food coupons, it is considered as cash disbursement in lieu of food coupons, making it taxable. Therefore, you cannot claim a rebate. If you are providing the food coupons, then you can claim a rebate.

Regards,
Sreedar.S

Hi, can we include the food allowance amount in the monthly salary of workers to match the minimum wages?

Regards,
JK

My company provides Rs 2500 Sodexo coupons, but I received Rs 2500 in cash. Is this cash considered a tax benefit for return filing, given that it is less than that amount?

Hi friend,

Can we give the food allowances to the employee in salary? We don't have the canteen facility on our premises. How much can we give?