Food Coupons Under New Tax Regime. Under the new income tax regime for FY 2020-21 employees can not claim tax exemption on meal coupons given by way of paid vouchers The income tax department considers free meal or beverages. An In-depth Break-Even Point Analysis.
The perquisite valuation rule Rule 3 7 3 of the Income Tax Rules governing provision of food and food coupons is as follows. The amount so determined shall be reduced by the amount if any paid or recovered from. This means that commonly availed deductions such as investments in EPF PPF etc or tax exemption on rent paid or food coupons received etc will not be available under the new tax regime.
Such meal vouchers issued by a company to its employees should be used only during working hours and it is restricted to two meals per day.
Food coupons are nothing but plain vouchers given by organizations to employees to have a meal at your convenience. Rule 37iii of Income tax Rules. These food coupons or meal vouchers as per the income tax rules are tax-exempt up to the limit of Rs 50 per meal. And under the old tax regime if he is able to claim deduction of Rs.
