Can anyone tell me if there is a ceiling for issuing Sodexho coupens for employees under FBT struture? In some companies there is no ceiling. Is it permitted as per law ? Also please do let me know what is the policy in your company.
From India, Delhi
From India, Delhi
Dear Sir,
FBT has been abolished now.
Further, the following limits are specified under the Income Tax Act.
Gift Vouchers: exempt from tax upto Rs. 5000/- per annum
Meal Vouchers: exempt upto Rs. 50/- per meal
The employer is at liberty to pay any amount. There is a restiction only on the amount that would be exempt from tax and any amount in excess would be chargeable to tax in the hand of the employee.
Hope this would help you.
Thanks & Regards,
Avika Kapoor
Manager – Business Development
Kapgrow Corporate Advisory Services Pvt. Ltd.
E-173, Kalkaji, New Delhi – 110019
011-40553774
09310270884
From India, New Delhi
117FBT has been abolished now.
Further, the following limits are specified under the Income Tax Act.
Gift Vouchers: exempt from tax upto Rs. 5000/- per annum
Meal Vouchers: exempt upto Rs. 50/- per meal
The employer is at liberty to pay any amount. There is a restiction only on the amount that would be exempt from tax and any amount in excess would be chargeable to tax in the hand of the employee.
Hope this would help you.
Thanks & Regards,
Avika Kapoor
Manager – Business Development
Kapgrow Corporate Advisory Services Pvt. Ltd.
E-173, Kalkaji, New Delhi – 110019
011-40553774
09310270884
From India, New Delhi
In my privous concern upto 5400/- per annum. also Rs.50/- per meal is excempted. Regards R.Palaniswamy
From India, Coimbatore
From India, Coimbatore
I do agree with Avika Kapoor. we have limit of rs. 5000.00 per month. rgds Ranjit Singh HRD - Vikas Publishing House Pvt Ltd 9971396894
From India, Delhi
From India, Delhi
Hi,
In our company we are processing the food coupons, max limit Rs.3000 per month.
and this will be adjusted in total CTC, as food coupons, under annual benefit,so that this amount wont come under tax part.
Eg. basic is 10000, before opting food coupons, after that your basic will come down slightly, and HRA, also. and accordingly the PF and LTA, Performance bonus will also share this changes, but finally CTC wont change.
Regards
Rajanikanth.
Asst Manager-HR
From India, Hyderabad
In our company we are processing the food coupons, max limit Rs.3000 per month.
and this will be adjusted in total CTC, as food coupons, under annual benefit,so that this amount wont come under tax part.
Eg. basic is 10000, before opting food coupons, after that your basic will come down slightly, and HRA, also. and accordingly the PF and LTA, Performance bonus will also share this changes, but finally CTC wont change.
Regards
Rajanikanth.
Asst Manager-HR
From India, Hyderabad
Dear Friend,
Sodexo Pass Meal Coupns does not constitute earnings in the hands of the employee. Therefore it does noy come within the ambit of "Income" for Icome Tax purposes.
These Meal Coupons also do not attract FBT.
There is no fixed limit for issuing Meal Coupons. However, the amount so allowed should not appear to be unreasonable and a blatant/obvious was of avoiding Tax.
A sum of Rs.5000/- at Senior levels, and proportionately reduced amounts down the line, would be reasonable entitlements.
Best Wishes,
Vasant Nair
From India, Mumbai
Sodexo Pass Meal Coupns does not constitute earnings in the hands of the employee. Therefore it does noy come within the ambit of "Income" for Icome Tax purposes.
These Meal Coupons also do not attract FBT.
There is no fixed limit for issuing Meal Coupons. However, the amount so allowed should not appear to be unreasonable and a blatant/obvious was of avoiding Tax.
A sum of Rs.5000/- at Senior levels, and proportionately reduced amounts down the line, would be reasonable entitlements.
Best Wishes,
Vasant Nair
From India, Mumbai
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