Meal Voucher Tax Exemption Raised to ₹200 Per Meal Under New Rules The Indian government has updated its tax regulations to provide a more favorable treatment for employees receiving meal vouchers. Effective from April 2026, the tax-exempt limit for employer-provided meals has been increased from ₹50 to ₹200 per meal. This change applies to both the old and new tax regimes, ensuring consistency in tax benefits for salaried individuals. The revised rules, part of the Income-tax Rules, 2026, aim to clarify ambiguities that previously limited the exemption to the old regime only. Under the new framework, employees who receive meal vouchers from companies like Sodexo, Pluxee, or Zaggle can now claim a tax exemption of up to ₹200 per meal, regardless of which tax regime they opt for. This adjustment addresses a longstanding issue where the exemption was restricted to ₹50 per meal under the old regime and entirely excluded from the new regime. The change is expected to reduce the taxable income of employees, thereby increasing their take-home pay. The updated rules specify that the value of food and non-alcoholic beverages provided by employers is calculated as the employer’s cost minus any amount recovered from the employee. However, this valuation method does not apply in specific scenarios. For instance, free meals or vouchers used at eating joints during working hours, up to ₹200 per meal, are fully tax-exempt. Similarly, tea or snacks provided during working hours are exempt from taxation. Meals served in remote areas or offshore installations are also excluded from the valuation calculation. Other tax exemptions remain unchanged under the new rules. Employees can still claim a tax-free gift limit of ₹15,000 annually and a tax-free medical loan of up to ₹2 lakh for the treatment of specified diseases.#indian_government #income_tax_rules_2026 #sodexo #pluxee #zaggle
