Food allowance

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 a year for food allowance provided by your employer, assuming two meals a day and 22 working days 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.

Note: 1. We show both sides in the salary template: on the Earning side as "food allowance" and on the Deduction side as "food allowance deduction".
2. Free meals in excess of Rs. 50 per meal less the amount paid by the employee is a taxable perquisite.

3. Tea or snacks provided by the employer during office hours are exempt from tax.

4. Meal, lunch or refreshment allowance is a perquisite, taxable under the Income Tax Act. However, if a free meal (i.e., food and non-alcoholic beverages) voucher, such as a Sodexo Pass, is provided by the employer during office hours at the office or business premises, up to Rs. 50 per meal given to the employee is exempt from tax.

5. Should meal vouchers be given on a monthly basis? No, there is no such rule. The employer can issue coupons monthly, quarterly or whenever they wish.