Food Coupons

This query is : Resolved

Mohd Sarfaraz Latibani (Querist)
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03 December 2008 Previously we are giving food coupons to our employees and now we are crediting the amount of food coupons in their salaries.
I want to know that can we give food coupons amount in cash or can we credit the amount to therir salary accounts. So can they claim food coupons allowances.

Thanks.

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
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03 December 2008 If you will cedit the coupen amount into their salaries, it will be treated as food allowance, which is fully taxable in the hands of employees.

However if you will give food coupens or provide the food in the office that will be exempted up to rs. 50 per meal in the hands of employees.