Understanding Sodexo Coupons: What Are the Tax-Free Limits for 2010-2011?

Dear All,

As per the new guidelines i.e., for FY 2010-2011, what is the maximum limit up to which Sodexo coupons will be considered non-taxable? Are there any other meal/food coupons as well that help in tax savings?

Regards,
Bhavna

As per the income tax guidelines on this perquisites part of the salary as of the year 2009-10, it is not taxable up to an amount of Rs. 50 per meal. If we consider a meal per day, then Rs. 50 x 26 working days at max. would constitute Rs. 1,300 per month and Rs. 15,600 per year.

It does not clarify whether that needs to be only Sodexo Coupon. It could be any such coupon that you can utilize in any eating joints outside the office, but Sodexo has a good marketing strategy due to which most companies adopt their coupon as it covers most eating joints.

Thank you all for the responses. I came to know about Accor services as well to provide food coupons.

Please also suggest, does the amount of coupons to be issued every month differ according to the number of days present?

Also, as we are offering it as a part of CTC, can we show it in the Payslip/Appointment letter?

Regards,

Bhavna

ACCOR is similar to Sodexo and is honored in select restaurants and departmental stores. The food coupon is part of CTC and need not be shown in the payslip. Since it is part of CTC, the loss of pay period shall be taken into account while determining the food coupon amount.

Thanks again Pon, but I am still a little confused.

Let us say ABC is at a salary of Rs. 30,000/- per month. We show Rs. 2600/- as Food Coupons as a part of his CTC in his appointment letter. In a particular month, he was on leave for 5 days, so we would only offer coupons for Rs. 2100/-... right? Then where will we adjust this Rs. 500/- in his salary for that month? Or does he lose that money/coupons?

Regards,
Bhavna

You cannot issue food coupons worth more than Rs. 1350/- as tax-free. Please check whether he is on loss of pay or has availed eligible leave. If it is a loss of pay, release food coupons worth Rs. 1350/- and deduct the equivalent amount from other allowances.