The tax treatment of meal card benefits has seen a major shift with the introduction of the latest income tax rules. From 1 April 2026, the tax-exempt limit on employer-provided meals has been increased to ₹200 per meal, up from ₹50 earlier. Importantly, the earlier restriction that denied this benefit under the new income tax regime has been removed.
This omission matters because tax laws are interpreted based on what is explicitly written. If a restriction is not mentioned in the provisions, it generally cannot be assumed or imposed later. Hence, people who choose the new tax regime may also benefit.
Another key aspect is that meal vouchers are not treated as deductions like those under Section 80C. Instead, they fall under salary perquisite valuation rules. This means if the prescribed value is excluded before salary is taxed, it does not become taxable income at all.
This change has sparked interest among taxpayers, especially those who had opted for the new regime due to its lower tax rates but fewer exemptions. However, to claim the ₹200 per meal benefit tax-free, employees must meet specific conditions regarding its use, timing, and structure.
What conditions must you meet to claim ₹200 per meal tax-free?
The standard calculation assumes ₹200 per meal and 2 meals per day, totalling a daily allowance of ₹400. However, the benefit does not apply automatically. Here are the conditions under Rule 15 that must be satisfied in order to claim the tax-free benefit:
- Working days only: Both meals must be provided during working hours. The benefit is typically calculated based on actual working days (example: 20-22 days a month), not weekends or holidays.
- Usage restricted to food and beverages: The meal vouchers can be used only to purchase food and non-alcoholic drinks. Spending on groceries or other items is not applicable.
- Employer-provided benefit only: The mean voucher/card must be issued by the employer as part of the salary package.
- ₹200 per meal limit: The tax-free value is capped at ₹200 per meal. Any amount above this becomes taxable as a perquisite.
- Snacks/tea during working hours: The tax-free benefit applies to meals, snacks, or beverages provided during working hours. This includes items such as tea, coffee, breakfast, or light snacks.
Meal cards or food vouchers such as Sodexo, Pluxee, and Zaggle are employer-funded cards designed for food-related expenses. When structured in line with tax rules, their value, up to the prescribed limit, is not treated as part of taxable salary. This allows employees to reduce tax outgo while covering routine meal expenses at the workplace or nearby outlets.
The Income-Tax Rules, 2026, part of a broader overhaul of salary and perquisite taxation, were notified by the Central Board of Direct Taxes (CBDT) on 20 March 2026, introducing several changes for salaried employees.
