Hello,
Please reply ASAP.
I am particularly referring to SODEXO FOOD PASS. I would like to know whether SODEXO Food Coupons in particular is accepted as TAX-FREE Perquisite under the head 'Salary' upto the limit of Rs.50 per meal. I have some doubt whether income-tax authorities allow the same as exempt from salary in the hands of employee? I have not come across any case-law in this respect. Our orgn. is thinking of introducing it. But, I need to be absolutely sure before introducing SODEXO Food Pass. I had approached Sodexo Co. asking for exemption certificate from the income-tax dept. issued to them in this respect. But, they are not able to give conclusive evidence in this respect. They had sent me the relevant Income- Tax Rule (i.e. Rule 3(7) (iii) of the Income-Tax Rules, 1962). But, whether it is allowed by the ITO is my question. I need conclusive evidence to convince my management.
Futher, my next query is that it is specified in the above mentioned rule that Rs.50 per meal. Does the meal include breakfast, lunch and supper(dinner)? there is no clarity in the Act in this respect. If above is true, then Rs.150 per day (Rs.46,800/- per annum) will be exempt from tax. Sodexo Co. is claiming as such (i.e.Rs.150 per day)
Lastly, is the Sodexo Food Pass tax free, even if it is utilised anywhere in India or it should be utilised only in the Company Premises.
Thanking you in anticipation,
Regards,
CAclubindia
