Applicability of tax on meal vouchers

I work for a Public Sector Company which provide Sodexo Meal coupons to all the employees on a working day basis.  The company provides Meal coupons on a monthly basis for the number of days worked in a month.  The coupons vary from Rs.75 to Rs.200 depending on the category of officers.

Now the company has informed that meal coupons beyond value of  Rs.50 would attract Income tax and would be treated as Perks.

Can anyone tell me if this is ok?  Is there any ceiling fixed by the Authorities for deducting tax on meal vouchers?


Thanks


Srinivasan 

Replies (3)

Yes, upto Rs. 50/- per meal is tax free. Over and above this amount will be taxed in the hands of the employee.

agree with above

if the meal is provided at office premises ,

through paid vouchers wich are not transfereble

in these conditoins the valu of meal is exempt to the extent of Rs-50, value  in excess of 50 is taxable

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