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Food coupons

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This query is : Resolved

nitin (Querist)

12 August 2010 If a comapny provides Sodhexo coupons of Rs.1200 per month to its employees, will it be exempt from tax in the hands of employees? These coupons can also be used at retail outlets for buying items other than edible items like garments, etc.
As per perk rules it is allowable to the extent of Rs.50/- per day for meals.Practically, these coupons are given by the comapny to its employees and are used by employees for purchase of various items other than meals also and treated as exempt from tax. Further can food coupons of Rs.1200 p.m. and gift vouchers of Rs.5000 per annaum be given to employees and treated as tax free?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

12 August 2010 As per act, Meals facility provided during the office hours and Rs.50 per meals only. but practically as human during office hours one meals is can be considered as exemption as normal course of life.

Other Gift vouchers, up to Rs.5000 exempted if, exceed it will be taxable (excess amount)

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