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Food Plus Cards

Davison Mathew (Accounatnt) (98 Points)

16 June 2008

Dear all,

Please advice me that whether exemption is available for Food Plus Cards issued to employees by emplyer?

Thanks & Regards

Davison Mathew

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2 Replies

Shekar (CA & LCS ) (1109 Points)
Replied 16 June 2008

Food coupons or cards which are not transferable and usable only at eating joints or outlets is not to be treated as a perquisite and not taxed in the hands of employees.

Such coupons or cards, which are prepaid, are also not liable for FBT. There is no limit on the amount that can be paid by way of such coupons and would be non-taxable in the hands of employees

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sagar (CA Final) (379 Points)
Replied 16 June 2008

if employer is subject to fbt, then food voucher is not taxable in hands of employee. If Employer is not subject to FBT, then employee has to include the food pass amount in his gross salary. Exemption limit available is Rs.50.

Sec115 WJ 2 ii implies that there are 2 conditions of exemption of food vouchers.

1. the voucher is non transferable

2. The vouchers are used in eating joint.