Outlook Business Desk
As per revised income tax rules effective April 1, 2026, the tax-free limit on employer-provided meals has been raised to ₹200 per meal from ₹50 earlier. The updated rules also remove the earlier restriction under the new tax regime, changing how such salary benefits are taxed.
Tax rules apply only to what is clearly written, not assumed. With this update, salaried people under the new tax regime can also get meal benefits, as earlier exclusions are no longer mentioned in the law.
Now, meal vouchers are not covered under Section 80C deductions. They are taxed under salary perquisite valuation rules, where eligible exclusions are deducted before calculating taxable salary, ensuring the exempt portion is not added to income.
The standard calculation assumes ₹200 per meal for two meals a day, totalling ₹400 daily. However, this is only a benchmark value and applies only when all required tax conditions are met by employees.
To claim tax-free benefit, meals must be provided on working days during office hours. Vouchers must be employer issued and used only for food and non-alcoholic beverages. The exemption applies up to ₹200 per meal including snacks tea and coffee.
Employer-issued meal cards and vouchers like Sodexo, Pluxee and Zaggle are meant for food expenses. When structured as per tax rules, their value up to the allowed limit is excluded from taxable salary, helping reduce employees’ overall tax burden.
Income-Tax Rules 2026 introduced by the Central Board of Direct Taxes (CBDT) were notified on March 20, 2026. The overhaul brings changes to salary and perquisite taxation framework affecting how employer-provided benefits are assessed for tax purposes.
When structured correctly, employer meal vouchers help reduce taxable salary while covering daily food costs at workplace outlets, provided all income tax conditions are properly met by both employer and employee.