Meal Coupons
This query is : Resolved
09 July 2011
I have a client who issues paid vouchers in the form of meal coupons to its employees. WEF June 2011, the amount of meal coupons paid has been revised. The client company now issues meal coupons in excess of 50/- to its employees.
Regarding valuation of perquisite of paid vouchers for meals u/s 17(2), I have the following queries:
1) Can the exemption limit of 50/- per meal be considered as a basic exemption limit?
2) The provisions of Rule 3(7)(iii) of the Income Tax Rules emphasize that the limit of 50/- is per meal and the word ‘meal’ covers both lunch and dinner. How many meals can be considered per working day for the same?
3) Therefore, if employees take two meals in a day during working hours, can we claim an exemption exceeding 50/-?
Regarding valuation of perquisite of paid vouchers for meals u/s 17(2), I have the following queries:
1) Can the exemption limit of 50/- per meal be considered as a basic exemption limit?
2) The provisions of Rule 3(7)(iii) of the Income Tax Rules emphasize that the limit of 50/- is per meal and the word ‘meal’ covers both lunch and dinner. How many meals can be considered per working day for the same?
3) Therefore, if employees take two meals in a day during working hours, can we claim an exemption exceeding 50/-?
CA MANOJ GUPTA
(Expert)
10 July 2011
1. IT IS THE BASIC EX LIMIT
2.THE LIMIT IS RS 50 PER MEAL
U CAN HAVE ANY NUMBER OF MEALS BUT SINCE THE TERM IS NOT DEFINED IN THE ACT GENERAL MEANING WILL PREVAIL AND LIMIT WOULD APPLY TO 2-3 MEALS PER DAY
4. THE EX LIMIT IS 50 PER MEAL IF U HAVE TWO MEALS THEN EX WILL BE UPTO 100 RS.
CAANOJ GUPTA
JODHPUR
09828510543
2.THE LIMIT IS RS 50 PER MEAL
U CAN HAVE ANY NUMBER OF MEALS BUT SINCE THE TERM IS NOT DEFINED IN THE ACT GENERAL MEANING WILL PREVAIL AND LIMIT WOULD APPLY TO 2-3 MEALS PER DAY
4. THE EX LIMIT IS 50 PER MEAL IF U HAVE TWO MEALS THEN EX WILL BE UPTO 100 RS.
CAANOJ GUPTA
JODHPUR
09828510543
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