Upto what limit

Food Coupens are totaly exempt from Tax and company's policy decides the limit of food coupens.

Hi

there is a limit also if i am not wrong. The limit is Rs. 50 per day

The Central Board of Direct Taxes has clarified that employees are not to be taxed when they are issued non-transferable food coupons usable only at food outlets.

There is no limit laid down by law on the amount that can be paid through such coupons. Similarly, the employer is also not chargeable to Fringe Benefit Tax on the same.

So there is no limit. The one you are talking about is diff.

hi Prakash,
what i remember before introduction of FBT is, there was a limit of Rs.50 per day. I am not very sure about the current status. I tried but not able to find any suct clause.
I think you are absolutely right.

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

Such coupons, 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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Prakash is right....

YES MR. ABHIANV LUNCH PROVIDED TO EMPLOYEES ON WORK PLACE ARE FULLY EXEMPTED THERE IS NO LIMIT.

yes . fully exempted

yes ... i think prakash is right

Regards,

Varun Makhija

Hi Mr. Suresh,

Lunch provided by the company is fully exempted but if the company is issuing Food Coupons. Then if the value of that coupon exceeds Rs. 5 it will be taxable in the bands of employees as a perquisite or in the hands of employer if he/she/it is subject to FBT,

Hope you will find this information helpful.

Regards

Vijay Kumar

An individual has filed her returns for the AY 2007-08 on 14th August having a refund of Rs.6000/-.Now the IT Authorities says that the due date of filing revised returns has expired.What is the duration of filing revised returns for the AY 2007-08?

Yes, Non-transferable food coupons are totally exempt from Income Tax

Pl. refer sec. 115WB(2)(B)

Exempted FBT :

1. Fixed lunch/ refereshment  allowance

2. Food/ beverages provided / or for paid by the employer for emloyees in office / factory/own trainning centre.

3. Payment through paid vr. which r not transferable.

4. Pyament through non transferable pre paid electronic meal card usable at eating joints or outlets. w.e.f. A.Y. 2009-10

Surana/Chennai

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