Meaning: An employer can give a food allowance. Sometimes employers provide food at work or offer you a meal card or digital voucher for food.
Exemption: Section 10 (14) also includes a tax exemption of Rs.26,400 in a year for food allowance provided by your employer assuming two meals a day and 22 working days in a month.
Taxable or non-Taxable: Since meal vouchers and cards are not in the form of cash, the Meal benefit is not taxable in the hands of the employees.
N. B- 1. We show both sides in the Salary Template on Earning Side as a" food allowance" and on the Deduction side as a " food allowance deduction".
2. Free meals in excess of Rs. 50 per meal less the amount paid by the employee shall be a taxable perquisite.
3. Tea or snacks provided by the employer during office hours is exempt from tax.
4. Meal or lunch allowance or refreshment allowance is a perquisite, taxable under Income Tax Act. However, if free meal (i.e., food and non-alcoholic beverages) voucher such as Sodexo Pass, is provided by the employer during office hours at office or business premises, up to Rs.50 per meal given to the employee is exempt from tax.
5. Should meal vouchers to be given on monthly basis? No. there is no rule as such. The employer can issue coupons on monthly or quarterly or whenever they wish.