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Employees Benefit Expenses

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G. Parameshwar Rao

Accounts officer

56 Points Posted on 16 April 2023

Dear Experts,
I need clarification on the below points.

if an organization provides subsidiesied lunch and tea coffee for their employees by deduction of nominal amount from the employee salary.

Also employer is providing sodexo coupon for employees in order to save tax.

Experts can this allowed as per Income tax act both the cases can the employer take the benefits of expenses.

Request your valuable opinion on this.

Thanks
Parameshwar

Replies (2)

Quick Summary

This discussion seeks clarification on the tax treatment of employee benefit expenses, specifically subsidised lunches and tea/coffee provided through salary deductions. It also questions the tax deductibility for employers offering Sodexo coupons to employees. The core issue is whether these are permissible employee welfare expenses under the Income Tax Act and if employers can claim benefits for these costs.