Hi Friends,
I have a query regarding the tax limit on Sodexo/food coupons for claiming Income Tax benefits. I know that earlier, we could issue up to Rs. 30,000 per annum (maximum Rs. 100 per day), but recently the Income Tax department issued a circular about food coupons, stating that the value of food coupons has decreased. Actually, I don't know by how much they have decreased. Hence, I request that everyone clarify my doubts regarding the same. I would be very happy if someone provided me with detailed information about food coupons with the latest amendments from the Income Tax department.
Regards, Sravan
From India, Hyderabad
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86I have a query regarding the tax limit on Sodexo/food coupons for claiming Income Tax benefits. I know that earlier, we could issue up to Rs. 30,000 per annum (maximum Rs. 100 per day), but recently the Income Tax department issued a circular about food coupons, stating that the value of food coupons has decreased. Actually, I don't know by how much they have decreased. Hence, I request that everyone clarify my doubts regarding the same. I would be very happy if someone provided me with detailed information about food coupons with the latest amendments from the Income Tax department.
Regards, Sravan
From India, Hyderabad
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Hi As per Incometax dept website it is up to Rs 50 per day.
Directorate of Income Tax, RSP & PR, New Delhi
Free Meals: The perquisite of free means vary widely from uniform canteen food, coupons etc. to lavish hotel meals. The feature of free meals as a staff welfare measure has been recognised and is exempted upto Rs.35 for each meal by an earlier notification. The new rule allows expenditure on food upto Rs.50/-. Such free or subsidised meal should however be provided at office premises or through non transferable vouchers means for only meals during working hours. These vouchers should be provided by employers encashable only at eating joints. Tea and snacks during working hours are also not charged as perquisite. Also arrangements for meals in ‘remote areas' and offshore installations shall be exempt. The definition of remote area shall be the same as that associated with the accommodation sub-rule one located at least 40 kilometres away from a town having a population not exceeding 20,000 as per the last published all India census.
From Germany, Dresden
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Directorate of Income Tax, RSP & PR, New Delhi
Free Meals: The perquisite of free means vary widely from uniform canteen food, coupons etc. to lavish hotel meals. The feature of free meals as a staff welfare measure has been recognised and is exempted upto Rs.35 for each meal by an earlier notification. The new rule allows expenditure on food upto Rs.50/-. Such free or subsidised meal should however be provided at office premises or through non transferable vouchers means for only meals during working hours. These vouchers should be provided by employers encashable only at eating joints. Tea and snacks during working hours are also not charged as perquisite. Also arrangements for meals in ‘remote areas' and offshore installations shall be exempt. The definition of remote area shall be the same as that associated with the accommodation sub-rule one located at least 40 kilometres away from a town having a population not exceeding 20,000 as per the last published all India census.
From Germany, Dresden
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Income Tax Department.pdf
Income Tax Calculator.xls