Dear All,
As per the Income Tax Act there is no ceiling on Meal Vouchers this year. But will you advise as to the ceiling limit on the meal vouchers to be given to employees?
Thanks and Regards
Praveen
From India
11As per the Income Tax Act there is no ceiling on Meal Vouchers this year. But will you advise as to the ceiling limit on the meal vouchers to be given to employees?
Thanks and Regards
Praveen
From India
Hi Pravin,
Is it so?..please share the reference point for this with us..
Earlier or as of now it is Rs 50/ per working day which amounts to 1500 per month..some companies give Rs 100 per day..
Rs 100/- seems reasonable..it would be better to cross check with IT authorities..
Regards,
Rajat
From India, Pune
Is it so?..please share the reference point for this with us..
Earlier or as of now it is Rs 50/ per working day which amounts to 1500 per month..some companies give Rs 100 per day..
Rs 100/- seems reasonable..it would be better to cross check with IT authorities..
Regards,
Rajat
From India, Pune
hi! these are old limits. current notification talks about a limit of Rs 50 per meal. however, it also talks about use of vouchers during working hours for food and non-alcoholic beverages. well, how do you ensure usage during working hours. i also came to know that there were letters being issued by the IT department to some of the companies questioning them on steps taken by them to ensure law compliance when using meal vouchers. I think the IT department is concerned about the misuse of meal vouchers and wants to encourage canteens within companies which is evident from the reduction of meal voucher limit in an inflationary economy.
My take would be to have an in-house canteens (which most of the companies have) and provide meal allowance electronically every month. in case the employees do not exhaust the entire allowance provided to them during the financial year, refund them that amount as taxable income. this provides the employees an option to use the canteen if they want to, save on tax if they want to use the canteen, protects the companies from any legal hassles etc.etc. I know of companies that are helping companies through these kinds of systems.
rgds,
SM
From India, Mumbai
My take would be to have an in-house canteens (which most of the companies have) and provide meal allowance electronically every month. in case the employees do not exhaust the entire allowance provided to them during the financial year, refund them that amount as taxable income. this provides the employees an option to use the canteen if they want to, save on tax if they want to use the canteen, protects the companies from any legal hassles etc.etc. I know of companies that are helping companies through these kinds of systems.
rgds,
SM
From India, Mumbai
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