Food coupon #

What is food coupon? #

Food coupons provided by employers to employees through non-transferable vouchers which can be used only at the canteen provided by the employer may be tax exempt only if the cost of such meal is up to Rs. 50 per meal.

In case of cost of the free meal is greater than Rs.50 then the excess amount is taxable. An average of 22 working days in a month of 2 meals daily, a sum of Rs 26,400 can be availed as a deduction by an employee annually.

If the food coupon is part of employee CTC, then the monthly salary paid at their bank account will be processed after deducting the food coupon amount, since they are paid separately.