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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86Regards,
Sravan
From India, Hyderabad
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As per the Income Tax department's website, it is up to Rs. 50 per day.
Directorate of Income Tax, RSP & PR, New Delhi
Free Meals
The perquisite of free meals varies widely from uniform canteen food, coupons, etc., to lavish hotel meals. The feature of free meals as a staff welfare measure has been recognized and is exempted up to Rs. 35 for each meal by an earlier notification. The new rule allows expenditure on food up to Rs. 50. Such free or subsidized meals should, however, be provided at office premises or through non-transferable vouchers meant only for meals during working hours. These vouchers should be provided by employers and be encashable only at eating joints. Tea and snacks during working hours are also not charged as a perquisite. Additionally, arrangements for meals in 'remote areas' and offshore installations shall be exempt. The definition of a remote area shall be the same as that associated with the accommodation sub-rule, one located at least 40 kilometers 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 meals varies widely from uniform canteen food, coupons, etc., to lavish hotel meals. The feature of free meals as a staff welfare measure has been recognized and is exempted up to Rs. 35 for each meal by an earlier notification. The new rule allows expenditure on food up to Rs. 50. Such free or subsidized meals should, however, be provided at office premises or through non-transferable vouchers meant only for meals during working hours. These vouchers should be provided by employers and be encashable only at eating joints. Tea and snacks during working hours are also not charged as a perquisite. Additionally, arrangements for meals in 'remote areas' and offshore installations shall be exempt. The definition of a remote area shall be the same as that associated with the accommodation sub-rule, one located at least 40 kilometers 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