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Perquisite - Meal Card Exemption

karthik (Accounts Officer) (36 Points)

20 July 2010

Dear All,

As per the Sec 17(2) of IT Act.If the Meal Voucher Given to Employees is exempted up to the Limit of Rs.50 Per Meal.here is an two may of Meal Vouchers are avaialble in Market.One is by giving a Meal Voucher and another is by giving through Electronic Card.Can any once clarify is both the type of vouchers can be calime as Exempted or only the Voucher Format can be calimed as Exempted.

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6 Replies

CA. BIJENDER KR. BANSAL (ACA, B.COM) (8143 Points)
Replied 20 July 2010

IN income tax act, it is not specified, it depends on the company that in which mode it is providing services of meal card to its employee.

As per income tax act , language is

Free Meals: The perquisite of free means vary widely from uniform canteen food, coupons etc. to lavish hotel meals. The feature of free meals as a staff welfare measure has been recognised and is exempted upto Rs.35 for each meal by an earlier notification. The new rule allows expenditure on food upto Rs.50/-. Such free or subsidised meal should however be provided at office premises or through non transferable vouchers means for only meals during working hours. These vouchers should be provided by employers encashable only at eating joints. Tea and snacks during working hours are also not charged as perquisite. Also arrangements for meals in ‘remote areas’ and offshore installations shall be exempt. The definition of remote area shall be the same as that associated with the accommodation sub-rule one located at least 40 kilometres away from a town having a population not exceeding 20,000 as per the last published all India census

kantijain (Chartered Accountant in Practice) (385 Points)
Replied 02 November 2010

Dear Karthik,

Your question is very valid one as the section 17 read with Rule 3 provides for exemption only through non-transferable voucher and not from meal card. Strictly going by the literal interpretation it will be taxable perquisite.

S.Jegadeesan (CA Student) (637 Points)
Replied 22 June 2012

Dear Sir,

Pl clarify the following doubt regardimg exemption

How many meals can be provide by an employer in a single day to the employee?

Regards,

S.Jegadeesan

sanjay arya (DGM) (24 Points)
Replied 07 November 2019

Dear Sir, In a Financial Year ,If the Meal card distribution is done in October due to some procedural delays, whether amount credited to the meal card(50x2 per day )will be from March or it has to be from October to avail income tax exemption.