We have an idea to proceed with the food card/Sodexo for employees’ tax benefits. Kindly suggest how to calculate the amount and how to detect the particular from the earned gross. And about the tax benefits to the employee.
We have ICICI Meal card of Rs 2600/- which we have made it mandatory for those whose salary is Rs 40,000/- and above.
You just need to arrive on one amount like 1,300/- for 40,000 to 50,000/- salary employees and 2,600/- for above 50,000/- salary employees.
This amount you need to show in earning column and the same amount will be show under deduction column. Complete amount is tax free from Income Tax.
After Payroll over load the amount to employees cards. Here is the end.
Please revert in case of any further clarifications.
Thank you for the suggession Arpana.
Under rule 3(7)(iii) of I-T Rules, free food and non-alcoholic beverages provided to employees during working hours at the office premises or through ‘paid vouchers’, which are ‘not transferable’ and ‘usable only at eating joints’, are not a taxable perquisite. In addition, to be treated as tax-exempt in the hands of employees, a cap of Rs 50 per meal has been prescribed.
Food allowance can be given by the employer through the provision of food at working hours or through pre-paid food vouchers/coupons. "On a calculation of 22 working days a month and 2 meals per day, a sum of Rs 26,400 can be availed as a deduction by an employee annually,