Can anyone tell me if there is a ceiling for issuing Sodexo coupons for employees under FBT structure? In some companies, there is no ceiling. Is it permitted as per law? Also, please do let me know what is the policy in your company.
From India, Delhi
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From India, Delhi
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Dear Sir,
FBT has been abolished now. Further, the following limits are specified under the Income Tax Act:
Gift Vouchers: exempt from tax up to Rs. 5000/- per annum.
Meal Vouchers: exempt up to Rs. 50/- per meal.
The employer is at liberty to pay any amount. There is a restriction only on the amount that would be exempt from tax, and any amount in excess would be chargeable to tax in the hands of the employee.
Hope this would help you.
Thanks & Regards, Avika Kapoor Manager – Business Development Kapgrow Corporate Advisory Services Pvt. Ltd. E-173, Kalkaji, New Delhi – 110019 011-40553774 09310270884
From India, New Delhi
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118FBT has been abolished now. Further, the following limits are specified under the Income Tax Act:
Gift Vouchers: exempt from tax up to Rs. 5000/- per annum.
Meal Vouchers: exempt up to Rs. 50/- per meal.
The employer is at liberty to pay any amount. There is a restriction only on the amount that would be exempt from tax, and any amount in excess would be chargeable to tax in the hands of the employee.
Hope this would help you.
Thanks & Regards, Avika Kapoor Manager – Business Development Kapgrow Corporate Advisory Services Pvt. Ltd. E-173, Kalkaji, New Delhi – 110019 011-40553774 09310270884
From India, New Delhi
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In my privous concern upto 5400/- per annum. also Rs.50/- per meal is excempted. Regards R.Palaniswamy
From India, Coimbatore
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From India, Coimbatore
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I do agree with Avika Kapoor. we have limit of rs. 5000.00 per month. rgds Ranjit Singh HRD - Vikas Publishing House Pvt Ltd 9971396894
From India, Delhi
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From India, Delhi
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Hi,
In our company, we are processing the food coupons with a maximum limit of Rs. 3000 per month. This amount will be adjusted in the total CTC as food coupons under annual benefits so that it does not come under the taxable part. For example, if the basic salary is 10000 before opting for food coupons, after that, your basic will slightly decrease, along with HRA. Consequently, the PF, LTA, and performance bonus will also reflect these changes, but ultimately, the CTC will not change.
Regards,
Rajanikanth
Assistant Manager - HR
From India, Hyderabad
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In our company, we are processing the food coupons with a maximum limit of Rs. 3000 per month. This amount will be adjusted in the total CTC as food coupons under annual benefits so that it does not come under the taxable part. For example, if the basic salary is 10000 before opting for food coupons, after that, your basic will slightly decrease, along with HRA. Consequently, the PF, LTA, and performance bonus will also reflect these changes, but ultimately, the CTC will not change.
Regards,
Rajanikanth
Assistant Manager - HR
From India, Hyderabad
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Dear Friend,
Sodexo Pass Meal Coupons do not constitute earnings in the hands of the employee. Therefore, they do not come within the ambit of "Income" for Income Tax purposes. These Meal Coupons also do not attract FBT.
There is no fixed limit for issuing Meal Coupons. However, the amount allowed should not appear to be unreasonable and a blatant/obvious way of avoiding tax. A sum of Rs. 5000/- at senior levels, and proportionately reduced amounts down the line, would be reasonable entitlements.
Best Wishes,
Vasant Nair
From India, Mumbai
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Sodexo Pass Meal Coupons do not constitute earnings in the hands of the employee. Therefore, they do not come within the ambit of "Income" for Income Tax purposes. These Meal Coupons also do not attract FBT.
There is no fixed limit for issuing Meal Coupons. However, the amount allowed should not appear to be unreasonable and a blatant/obvious way of avoiding tax. A sum of Rs. 5000/- at senior levels, and proportionately reduced amounts down the line, would be reasonable entitlements.
Best Wishes,
Vasant Nair
From India, Mumbai
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In our company, we have a limit of Rs. 2200 per month for Sodexo coupons. We follow the logic below:
Rs. 50 per meal multiplied by 2 meals in a day equals Rs. 100 per day (a).
Multiplying (a) by 22 working days, results in Rs. 2200 per month.
Hope this satisfies your query.
Regards,
Preeti
From India, Delhi
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Rs. 50 per meal multiplied by 2 meals in a day equals Rs. 100 per day (a).
Multiplying (a) by 22 working days, results in Rs. 2200 per month.
Hope this satisfies your query.
Regards,
Preeti
From India, Delhi
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