Dear Team,
What is the limit for Food coupon. Can we give INR.5000 and the minimum of INR.500/-.
But the tax exemption will be INR.26400 max. Please advice.
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The limit for Food Coupon is maximum 36,000 per annum considering the number of meals of the day.
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As per Section [17(2)(viii)]read with [Rule 3(7)(iii)], any amount in excess of Rs. 50 is taxable. Going by the methodology, Rs. 50 * 22* 12 = Rs. 13,200 per annum to be exempt in my view. However taking the liberal interpretation as to what is the defination of term meal is not explained, as such construding the liberal interpretation it can be taken as three meals per day resulting to Rs. 13, 200 * 3 = Rs 39,600/- is the max amount that can be claimed.
The interesting question is if these are exempt if the employee is working from Home : ) The answer lies that the transfers for Food coupons has to be vide Non Transferable vouchers like Sodexo cupons.