Are Sodexo Meal Coupons Taxable? Understanding Employer and Employee Perspectives

Taxation Issues Related to Sodexo Meal Coupons

Please explain the exact taxation issues related to Sodexo meal coupons to be given to employees from the point of view of both the employer and employee. Are they liable for Fringe Benefit Tax? How can the employer include them in the employee's salary structure? Please note that the employer is a private limited company in this case.

Fringe Benefit Tax and Sodexo Meal Coupons

Please note that currently, Fringe Benefit Tax is not applicable.

Sodexo Meal coupons are tax-free in the hands of the employees up to a certain limit. The expense is a business expense and allowable for the computation of income tax for the employer. The coupons can be incorporated as a part of the salary.