Food Coupon

Dear All,
Let us say ABC is at a salary of Rs. 65,000/- p.m., we show Rs. 2500/- as Food Coupons as a part of his CTC in his appointment letter.
But tax exemption limit is 1350/-
can i issue the food coupons for the month of Rs.2500 or Rs.1350.
Please suggest me!!!!!!!!

Dear Ganesh,
Our company is newly started one and hiring process is going on. we will plan to issue food coupon to our staff. I don,t have idea about issuing food coupon via software and all.
Just i want clear as i above said!!!!!!!!!

It is better, if you issue food Coupons, worth RS 1350 ONLY. So that the employee gets Tax benefit. And also you should not show more than Rs 1350, in his CTC break up.

I think the limit Rs.1350/- is increased to 2700/- in FY11-12. My company is providing food coupons on 2 denominations 1350 & 2700 and they don't deduct tax on that.
Pon

Dear Pon,
Thank you for your information...
Iam already got the information from sodexo.
Find the below information, i hope this is useful to someone!!!!!!!!!!
As per the Income Tax Rule(13th amendment) dated 18-12-2009, the law clearly states that the employer can offer upto Rs.50 per meal in the form of vouchers which are totally non-taxable. On any working day, an employee can be offered two meals, which amounts to Rs.2200 per month (for a 5 day week organization) and Rs.2600 per month (for a 6 day week organization), offering annual tax exemption is upto Rs.31,200.
Tax exempt upto Rs.2200 / month (5 day week organizations) and upto Rs.2600 / month (6 day week organizations)

is full 31200 is tax exempted or 10% on 31200. how is the calculation done.
Madhu
Manager-HR