The tax treatment of employer-provided meal benefits has been significantly revised under the latest income tax rules. From 1 April 2026, the tax-exempt value has been raised to ₹200 per meal from the previous ₹50 limit. According to reports from Mint, the updated provisions also do not include the earlier restriction that excluded this benefit under the new tax regime, allowing wider applicability across both tax regimes. As per the revised provisions, the benefit can be claimed by salaried employees receiving meal card benefits through providers such as Sodexo, Pluxee and Zaggle.
For ITR filing on or before 31 July 2026, corresponding to financial year 2025-26, meal card tax benefits are available only under the old tax regime as per the Income Tax Act, 1961. As reported by Mint, for ITR filing from financial year 2026-27 onwards, the benefit will be available under both old and new tax regimes, following changes introduced by the Income Tax Act, 2025. According to Siddharth Maurya, Founder & Managing Director of Vibhavangal Anukulakara Private Limited, meal card benefits are reflected in Form 16 as part of the salary structure, with the eligible portion treated as a non-taxable perquisite. "Many taxpayers face the dilemma of tax payable on the overall salary, and are often subject to some differences as the non-taxable amount has to be reconciled with the salary slip and Form 16," he said, emphasizing the importance of reconciling Form 16 against salary slips for accurate tax benefit computation.
The standard calculation assumes ₹200 per meal and 2 meals per day, totalling a daily allowance of ₹400. According to reports from Mint, the benefit can only be claimed on working days and is restricted to food and non-alcoholic beverages. Meal vouchers are not classified as deductions like those under Section 80C, instead falling under salary perquisite valuation rules, meaning if the prescribed value is excluded before salary is taxed, it does not become taxable income at all. Maurya notes that even though meal card benefits are tax-free up to specified limits, taxpayers should still report them in ITR under exempt perquisites, with the reported amount matching the perquisite details in Form 16 (Part B).
Meal card benefits are reflected in Form 16 as part of the salary structure, with the eligible portion treated as a non-taxable perquisite. As reported by Mint, any taxable component, if applicable, is included in Part B of Form 16. Taxpayers can check if they have meal card benefits by examining their salary slip for a 'Sodexo/meal card' entry, checking their CTC breakdown for structured benefits, or reviewing Form 16 for the meal card listing. If employers fail to include meal card benefits in Form 16, employees must report the excess as 'Income from Salary' while filing their income tax return. Maurya suggests that employees can check their card balance using their HR portal or contact HR or payroll departments if they have any confusion about this structured benefit.
