MEAL COUPAN

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 January 2010 We are receiving Meal Coupan worth Rs. 3000/- per month I would like to know wheather it is taxable or not.Under New notification No. 94 Dt. 18.12.2009.

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
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05 January 2010 The value of free food and non-alcoholic beverages provided by the employer to an employee shall be the amount of expenditure incurred by such employer. The amount so determined shall be reduced by the amount, if any, paid or recovered from the employee for such benefit or amenity:

CMA. Dinesh S Adhikari, ACMA

CMA. Dinesh S Adhikari, ACMA (Expert)
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05 January 2010 According to Section 17(2), amount exempt, for any meal facility including non-transferable meal coupon in Office Premises during working hours, is Rs. 50 per meal.

Therefore taxable amount will be included in salary, as follow:

Taxable Amount = 3,000 - 50(per meal)*No. of working days(say 25)
So, Taxable Amount = 3,000 - 50*25
= Rs. 1,750

NOTE: From Rs. 1,750 that amount is deductable which received from employee, if any.

Regards!!!
Dinesh S. Adhikari

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
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05 January 2010 Above is the notification 94 and as per notification it seems to be taxable now. Earlier it was not taxable upto Rs. 50 per meal.