Dear Fraternity, hope all are well and safe. I have a doubt regarding Income Tax exemption concerning free meals (free food and beverages provided to the employee) in Perquisites 17(2) for the Financial Year 2020-21. Previously, it was Rs. 50 per meal and could be claimed for two meals per day, totaling Rs. 26,400 per year. However, there is currently no mention of two meals per day. Can you please advise?
Additionally, I believe this is an exemption that can be claimed by an employee. Kindly advise.
From India, Thiruvananthapuram
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11Additionally, I believe this is an exemption that can be claimed by an employee. Kindly advise.
From India, Thiruvananthapuram
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Fully Taxable Meals
Free meals in excess of Rs. 50 per meal, less the amount paid by the employee, shall be a taxable perquisite. However, the following free meals shall be exempt from tax:
a) Food and non-alcoholic beverages provided during working hours in remote areas or in an offshore installation;
b) Tea, coffee, or non-alcoholic beverages and snacks during working hours are tax-free perquisites;
c) Food in office premises or through non-transferable paid vouchers usable only at eating joints provided by an employer is not taxable if the cost to the employer is Rs. 50 (or less) per meal.
Regards, Adv. Shivam Kumar Taxblock India Pvt. Ltd. https://taxblock.in/
From India, Pune
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Free meals in excess of Rs. 50 per meal, less the amount paid by the employee, shall be a taxable perquisite. However, the following free meals shall be exempt from tax:
a) Food and non-alcoholic beverages provided during working hours in remote areas or in an offshore installation;
b) Tea, coffee, or non-alcoholic beverages and snacks during working hours are tax-free perquisites;
c) Food in office premises or through non-transferable paid vouchers usable only at eating joints provided by an employer is not taxable if the cost to the employer is Rs. 50 (or less) per meal.
Regards, Adv. Shivam Kumar Taxblock India Pvt. Ltd. https://taxblock.in/
From India, Pune
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