Effective April 1, the tax-exempt limit for employer-provided meal benefits has been raised from Rs 50 to Rs 200 per meal. This means employees can now receive a higher amount as non-taxable benefit.
Earlier, this benefit was not allowed under the new tax regime, but the revised rule removes that restriction from FY2026-'27. As per tax laws, meal vouchers are treated as salary perquisites, rather than deductions like those under Section 80C. This means the exempt amount is excluded before tax is calculated, reducing taxable income directly.
Typically, the benefit under the revised rules is calculated as Rs 200 per meal for two meals a day, which amounts to Rs 400 daily. However, it applies only to working days and is limited to food and non-alcoholic drinks.
Who Qualifies Before July 31 Deadline?
For the July 31 ITR deadline, meal card benefits remain capped at Rs 50 per meal under the old tax regime, as the filing pertains to FY2025-'26, which ended on March 31.
Salaried individuals receiving meal benefits through providers like Sodexo, Pluxee can still claim this exemption at the capped value. However, it is available only if they opt for the old tax regime.
When Will New Benefits Apply?
The exemption on meal benefits to Rs 200 per meal will apply under both tax regimes for returns filed by July 27, 2027 (FY2026'27). Any amount above this limit will be taxable, as per the rules.
Under tax norms, meal card benefits are reflected in Form 16 as part of salary, with the exempt portion treated as a non-taxable perquisite. Any amount exceeding the exemption limit is included in taxable income in part B.
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