Rules changed : No exemption on meal vouchers & coupons - New Income Tax Slab
- Under
the new income tax regime for FY 2020-21, employees cannot claim tax exemption
on meal coupons given by way of paid vouchers
- The income tax department considers free meal or beverages provided by an employer to employees during office hours to be a personal benefit to employees
For those employees who is opting for the new income tax slab which offers a lower tax rate, the income tax department has changed rules for claiming exemption on free meals provided by the employer to employees.
In a notification, the income tax department has said that employees opting for the new tax slab under Section 115BAC will not enjoy the benefit of tax exemption on meal coupons or vouchers.
"Under the new tax regime effective FY 2020-21, an employee can no longer claim an exemption for meal coupons given by way of paid vouchers. The exemption value is Rupees 50 per meal.
The following exemptions are, however, available to all employees:
1) The cost of free food and non-alcoholic beverages given by an employer during working hours at the office or business premises.
2) Tea and snacks provided during working hours.
3) Free food and non-alcoholic beverages provided during working hours for work in a remote area or an offshore installation.
No exemption on meal vouchers & coupons - New Income Tax Slab
