What is food allowance? #
Employee’s salary CTC has many components and one of them is food allowance. Usually, manufacturing companies will have food allowance as one of the salary components and service-based companies will offer food allowance for their employees who are all working during the night shift.
Free food and beverages provided to the employee are fully taxable if the meals are more than Rs. 50 per meal.
Food and non-alcoholic beverages are provided during working hours in an offshore installation, the remote location is exempted from tax.
Staff welfare expenses such as Tea, Coffee, or non-alcoholic beverages and snacks during working hours are tax-free.