There are many perks that come with working for a well-established company. One of the benefits is an annual meal allowance to be used as needed throughout one year!
This benefit includes tax exemption and can be spent on 2 meals per day. Enjoying tasty food while also saving money? Sounds like a win-win situation.
Let understand what meal allowance is and how it helps in taxation.
Meal allowance can be provided by the employer through the provision of meals during office working hours or through pre-paid food cards or digital coupons. For example, if an employer gives you a meal voucher worth Rs 50 per meal, then it is not taxable.
An employer can give a food allowance. Sometimes employers provide food at work, or they can offer you a meal card or digital voucher for food.
In addition to receiving a great paycheck, some employers offer employees access to affordable and nutritious meals in their office cafeteria or nearby restaurant options through allowances from Meal Allowance coupons.
The daily meal allowance for employees in India in 2022 is Rs 50 per meal. The company provides employees with a fixed salary and tax-free meal coupons.
Employers provide their employees with Meal Allowance or meal coupons to be used for two meals per day. The Annual Allowance is calculated at Rs 26,400 and it's tax-exempt when the employee gets them.
A meal allowance is a popular employee benefit offered by a number of organisations. The most preferred form of providing this benefit is the meal voucher or meal card.
Since meal vouchers and cards are not in the form of cash, the M eal benefit is not taxable in the hands of the employee.
Meal vouchers are a value-add in the salary package as they not only give employees a tax benefit but also let them enjoy a meal of their choice.
These vouchers can be used at a number of affiliate restaurants, food outlets and shops. Employees can use them to buy food and non-alcoholic beverages that they like.
Meal Vouchers are used in a number of countries. In India, the Meal Voucher system was formally implemented in 2001.
It is regulated by the Income Tax Act under which meal vouchers up to a total amount of Rs.50 per meal for a maximum of 2 meals per day is tax exempt.
Companies can give more amount as meal benefit to their employees but any amount exceeding Rs.50 per meal will be taxable.
One meal per day: Rs.50 X 22 days = 1100/- per month tax free