Meal Voucher Limit - Pdf Download

Dear All,
As per the Income Tax Act there is no ceiling on Meal Vouchers this year. But will you advise as to the ceiling limit on the meal vouchers to be given to employees?
Thanks and Regards
Praveen
15th December 2006 From India

Hi Pravin,
Is it so?..please share the reference point for this with us..
Earlier or as of now it is Rs 50/ per working day which amounts to 1500 per month..some companies give Rs 100 per day..
Rs 100/- seems reasonable..it would be better to cross check with IT authorities..
Regards,
Rajat
18th December 2006 From India, Pune

Dear Rajat,
Please find attached the scan of one of the Law reference books. We have cross verified this with the Taxmanns journal and also with a CA.
Let me know if you have any clarifications to provide to the same.
Regards
Praveen
18th December 2006 From India

Attached Files (Download Requires Membership)

fbt_doc_198.pdf (417.0 KB, 916 views)

I have uploaded the file again. See if you can open it. It is best to right click and say save target as it works. Regards Praveen
18th December 2006 From India

hi! these are old limits. current notification talks about a limit of Rs 50 per meal. however, it also talks about use of vouchers during working hours for food and non-alcoholic beverages. well, how do you ensure usage during working hours. i also came to know that there were letters being issued by the IT department to some of the companies questioning them on steps taken by them to ensure law compliance when using meal vouchers. I think the IT department is concerned about the misuse of meal vouchers and wants to encourage canteens within companies which is evident from the reduction of meal voucher limit in an inflationary economy.

My take would be to have an in-house canteens (which most of the companies have) and provide meal allowance electronically every month. in case the employees do not exhaust the entire allowance provided to them during the financial year, refund them that amount as taxable income. this provides the employees an option to use the canteen if they want to, save on tax if they want to use the canteen, protects the companies from any legal hassles etc.etc. I know of companies that are helping companies through these kinds of systems.

rgds,

SM
3rd June 2010 From India, Mumbai

In FY 2010-11, the meal vouchers or Food coupons limit as tax free is Rs.1350/- p.m, i.e. Rs.16200/- p.a.
3rd June 2010 From India, Lucknow

to add to pon1965’s comments, the allowance is per WORKING DAY. hence, legal experts advise linking meal allowance to attendance of the employee rather than a fixed amount per month...
17th June 2010 From India, Mumbai

Let the employee claim 16200/- for tax exemption. For loss of pay, if any, the deductions can be made from spl. allowances proportionately for issued meal vouchers. I am talking abt sodexo or accor food coupons.
17th June 2010 From India, Lucknow