ITR filing
If you are a salaried employee and your company provides meal cards like Sodexo, Pluxee, Zaggle, then it not only provides food facilities but can also become a great means of tax saving. However, its full benefit is available only if you understand the rules properly and be careful while filling ITR. There have been some important changes in the rules related to meal cards for AY 2026-27 and Tax Year 2026-27, ignoring which can be costly. Therefore, it is important that you file returns only after properly understanding its tax treatment, limits and reporting.
Meal Card is one of the most popular salary benefits offered by companies these days. You can use it on food and groceries, which has a direct impact on your pocket. But its real benefit comes when you adopt its tax rules correctly. As per income tax rules, tax exemption on meal cards for AY 2026-27 (FY 2025-26) is available only in the old tax regime. During this period, a discount of up to Rs 50 is available per mile. That means, if you use the meal card daily in the office, then it can become a significant tax saving.
Impact after changes in tax rules
There has been a change in the rules from tax year 2026-27. Under the new law, now the benefit of meal card will be available in both the old and new tax regime. Besides, the discount limit has also been increased to Rs 200 per mile, which can prove to be a big benefit for the employees. The most important thing while filing ITR is that you check your Form 16 carefully. Generally the amount of meal card is not shown separately, rather it is included in the perquisites. According to Rohan Mandhania, CFO of HungerBox, even though this benefit is tax-free, it is still necessary to show it correctly in the ITR under exempt perquisites.
In the ET report, experts say that if the value of the meal card exceeds the prescribed limit, then the excess amount is added to the taxable salary. In such a situation, it is necessary to report it in Schedule S of ITR with correct information under Section 17(2). Many employees make the mistake of assuming that the meal card is completely tax-free or do not show it correctly in the ITR. This may increase the risk of notice or penalty later. Therefore, ensure that the information given in Form 16 and ITR matches. Ultimately, the meal card is beneficial only if you use it properly. If your spending habits do not match this, then this benefit will not be very useful for you.
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