From April 1, 2026, the tax-exempt limit on employer-provided meals has been significantly increased to ₹200 per meal, up from ₹50 earlier. According to reports from Mint, this change represents a major shift in tax treatment that removes earlier restrictions that denied this benefit under the new income tax regime. The standard calculation assumes ₹200 per meal and 2 meals per day, totalling a daily allowance of ₹400. The biggest change is that the previous rule which denied meal card relief to new tax regime users has not been carried forward, as reported by Motilal Oswal. This omission matters because tax laws are interpreted based on written provisions, and if the restriction is missing, it generally cannot be assumed or added later.
To claim the ₹200 per meal tax-free benefit, employees must satisfy specific conditions under Rule 15 as reported by Mint. The benefit applies only to meals provided during working hours and is typically calculated based on actual working days (20-22 days per month) rather than weekends or holidays. The vouchers can only be used for purchasing food and non-alcoholic drinks, with spending on groceries or other items not applicable. The meal vouchers must be issued by the employer as part of the salary package and the tax-free value is capped at ₹200 per meal. Meal cards or food vouchers such as Sodexo, Pluxee, and Zaggle are employer-funded cards designed for food-related expenses, with the tax-free benefit applying to meals, snacks, or beverages provided during working hours, including items such as tea, coffee, breakfast, or light snacks.
According to Mint, meal vouchers are not treated as deductions under Section 80C but fall under salary perquisite valuation rules. When 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 chose the new regime for lower tax rates but fewer exemptions. The Income-Tax Rules, 2026, were notified by the Central Board of Direct Taxes (CBDT) on March 20, 2026. Meal vouchers are not a deduction like Section 80C but are part of salary perk valuation rules, and if the value is excluded before salary is taxed, it does not become taxable income at all, as explained by Motilal Oswal.
As reported by Mint, 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 tax-free benefit applies to meals, snacks, or beverages provided during working hours, including items such as tea, coffee, breakfast, or light snacks. The Income-Tax Rules, 2026 have increased the tax-free cap on meal vouchers from ₹50 to ₹200 per meal, applying to office meals, food during working hours, and eligible meal vouchers accepted only at eating joints, as noted by Motilal Oswal.
