Rs 200 meal tax-free voucher: New tax regime rules every employee must know
By Suchitra Mandal, ET Online |
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Tax relief for salaried employees in 2026
From April 1, 2026, salaried employees may get tax-free meal card benefits of up to Rs 200 per meal during working hours. This is a sharp rise from the earlier Rs 50 limit. A bigger update is that this benefit is likely available under both old and new tax regimes, boosting take-home pay.
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What are meal cards and how do they help?
Meal cards or food vouchers like Sodexo, Pluxee, and Zaggle are employer-paid cards meant for food expenses. If structured correctly, they are not treated as taxable salary perks up to the allowed limit. This helps employees save tax while managing everyday meal costs at the office or nearby outlets.
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Earlier rule: Benefit was blocked for new regime
Before April 2026, tax-free meal vouchers were allowed only up to Rs 50 per meal. But from June 21, 2023, employees under the new tax regime had lost this benefit due to a specific restriction added to tax rules. This made meal cards less useful for many salaried taxpayers.
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New rule raises limit 4 times to Rs 200
The Income-Tax Rules, 2026 have increased the tax-free cap on meal vouchers from Rs 50 to Rs 200 per meal. This applies to office meals, food during working hours, and eligible meal vouchers accepted only at eating joints. Tea and snacks provided during work hours also remain tax-free.
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Key relief: New regime restriction is missing
The biggest change is that the previous rule which denied meal card relief to new tax regime users has not been carried forward. This omission matters because tax laws are interpreted based on written provisions. If the restriction is missing, it generally cannot be assumed or added later.
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Why this can still be tax-free under new regime
Meal vouchers are not a deduction like Section 80C. They are part of salary perk valuation rules. If the value is excluded before salary is taxed, it does not become taxable income at all. That is why experts believe the new regime should also allow this benefit.
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The conditions you must meet to claim ₹200/meal tax-free
The benefit doesn't apply automatically, these conditions under Rule 15 must be satisfied:
*Meal must be provided during working hours
*Vouchers must be usable only at eating joints (not groceries or general stores)
*Vouchers must be non-transferable (personal to the employee)
*Value must not exceed ₹200 per meal, anything above is taxable as a perquisite
*Meal must be provided during working hours
*Vouchers must be usable only at eating joints (not groceries or general stores)
*Vouchers must be non-transferable (personal to the employee)
*Value must not exceed ₹200 per meal, anything above is taxable as a perquisite
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