Dear All,
As per notification referred by me, meal voucher issued employees for any amount (no max limit) is exempted from FBT for the employer. However, nowhere it is mentioned upto what amount it is exempted from Income Tax in the hand of an employee. Can somebody give some idea on this with proof/notifications.
Regards,
Jossy
As per notification referred by me, meal voucher issued employees for any amount (no max limit) is exempted from FBT for the employer. However, nowhere it is mentioned upto what amount it is exempted from Income Tax in the hand of an employee. Can somebody give some idea on this with proof/notifications.
Regards,
Jossy
Jossy, I can not give you any proof right now, but coupons issued upto Rs. 1300 per month is exempted from tax as per my knowledge.
From India, Mumbai
From India, Mumbai
Meal allowance in forms on voucher or coupons (Sodexho etc) is tax free for employees.
As per the Income tax rule upto Rs. 50 per meal per day is tax free. However, number of meals in a day are not mentioned.
So its safe to provide meal coupons upto 2500/- per month.
Regards
amit
From India, New Delhi
4As per the Income tax rule upto Rs. 50 per meal per day is tax free. However, number of meals in a day are not mentioned.
So its safe to provide meal coupons upto 2500/- per month.
Regards
amit
From India, New Delhi
Hi Amit, law formulated are based on logic when it comes to interpretations. These are especially true to fight a court battle. The current law says, Rs 50 per meal and also specifies during WORKING HOURS. I cannot assume anyone can have more than one meal during office hours and hence an upper limit of not more than Rs 1300 per month. Also, 10-15% of the employees would be on leave or traveling (where they enjoy tax free reimbursement of food bills). In that scenario, I would suggest not more than Rs. 50 per WORKING DAY. This should be calculated basis attendance of the employee. Quite complicated isn't it? But, companies that have taken legal opinion rather than relying on marketing gimmicks of voucher companies have started linking attendance to meal allowance. Talk to your legal expert if you want to issue a flat amount and that too exceeding rs. 1300 per month. all the best!
From India, Mumbai
From India, Mumbai
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Circular No 1-2018 Processing of income-tax returns under section 143(1) of the Income-tax Act .pdf
P-TAX.csv