Hi All, PLease let me know if the sodexo meal coupens are taxed in the AY 2010-2011 ( for the F.Y April 09 to March’10). We give out meal coupens worth Rs 1100 per employee. Thanks, Anupama
From India, Pune
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2From India, Pune
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Hi All, I had mailed the SODEXO for the meal voucher limit, attached is the answer i got from them, hope this will help everyone.
From India, Pune
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From India, Pune
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Hi, The company providing free meals to employees in the same time can opt Meal Voucher? Please guide me. Nivas.
From India, Bangalore
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From India, Bangalore
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yes, you can issue meal voucher which can be used in select restaurants, departmental stores, etc. The limit is 1350/- p.m for tax exemption.
From India, Lucknow
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From India, Lucknow
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IT Rules for Meal Coupons
There are two rules of IT Rules which should be considered here:
Rules (3)(7)(iii)
As per the rule, generally, meal coupons provided to employees are tax-free, provided the payment per meal is limited to ₹50. The maximum amount per month may also be capped based on the number of working days; it should be non-transferable and usable only at eating joints.
Sodexo coupons can be used not only at eating joints but also at places like supermarkets and hence are taxable under this provision.
Rule 3(7)(iv)
As per Rule 3(7)(iv), if such gifts are given extraneous to the salary and their value is below five thousand rupees, then they are tax-free.
From India, Jamshedpur
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There are two rules of IT Rules which should be considered here:
Rules (3)(7)(iii)
As per the rule, generally, meal coupons provided to employees are tax-free, provided the payment per meal is limited to ₹50. The maximum amount per month may also be capped based on the number of working days; it should be non-transferable and usable only at eating joints.
Sodexo coupons can be used not only at eating joints but also at places like supermarkets and hence are taxable under this provision.
Rule 3(7)(iv)
As per Rule 3(7)(iv), if such gifts are given extraneous to the salary and their value is below five thousand rupees, then they are tax-free.
From India, Jamshedpur
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