Food coupons taxable
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Food Coupons or Meal Vouchers help Increase in-hand Salary – India
It allows companies to subsidise midday meals luncheons for their employees without having to run their own canteens. The scheme dates to , when food rationing was still in force following the end of the war. The British government granted an extra-statutory tax concession, believing that this would help citizens afford healthy meals. Under the concession, luncheon vouchers are free of income tax and national insurance contributions up to the value of 3 shillings 15 pence a day.
Food coupons save income tax on Rs 50 per meal in working hours. Grocery, use food card at restaurant, Sweet Shop, bakery, Pizza hut, KFC. What are food coupons? Food coupons are nothing but plain vouchers given by organisations to employees to have a meal at your convenience. The two big.
The initial level of 2s. In the early days, a company that wanted to subsidise their staff lunches, but not run a canteen, had to have vouchers printed and make arrangements with one or more local restaurants to accept them. In addition, it would have to administer the scheme for instance by checking and counting the vouchers returned from the restaurants prior to settling their account.
In , a businessman, John Hack, realised that a single standardised voucher acceptable across the UK would be more logical and efficient. He subsequently started the Luncheon Vouchers Company in to implement the nationwide Luncheon Voucher scheme. In , nine large catering companies purchased the company, with Hack staying on as managing director.
Meal voucher
The company was bought by Accor in Restaurants that accept the vouchers display an "LV" logo in their windows. The vouchers were used as a form of payment in Cynthia Payne's brothel in London during the s. Meal vouchers were introduced in Belgium in Electronic meal vouchers were introduced in and the old paper meal voucher system was phased out on January 1, Food coupons are nothing but plain vouchers given by organisations to employees to have a meal at your convenience. The two big companies that issue such coupons are SodexHo and Ticket Restaurant. Your organization would tie up with these coupon providers and provide you the coupons as part of your salary package CTC.
They work in the same manner as the paper coupons but look like a debit card. Normally, organizations make it an optional feature of your package so that anybody who does not want them can opt out.
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Well, the benefit is too good to ignore. The income tax of India recognizes these food coupons or meal vouchers as a tax exempt entity. The amount of coupons you avail are not included in your taxable salary. So, the amount you would normally paid as income tax would land up in your pocket to spend!
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Income tax rules mentions meal allowance through meal vouchers can be provided up-to Rs. Assuming that any employee would consume at least two meals during work hours breakfast and lunch or evening snacks and dinner , and hence at the rate of Rs.
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Hence, if you opt for Meal Vouchers Rs. Meal Vouchers can be used as a mode of payment for purchase of food items and non — alcoholic beverages. They have a validity of one year typically from 1 Jan to 31 Dec of any year and can be used anywhere in India.
The outlets generally have the stickers of the vouchers pasted on their visible areas to show that they accept these coupons. They are issued in varying denominations of Rs. Please note that outlets will not return the change in CASH if the total amount is not rounded off to the denomination of coupon you have.
During sales at shopping malls, it was not uncommon to spot someone using his accumulated meal vouchers to pay for a shirt or a small toy — a habit not in keeping with the spirit of income tax I-T laws, which provide an exemption to meal vouchers subject to certain conditions. The state of Texas offers the following example of how it applies sales tax to this type of promotion:. To ensure that the tax benefit is optimally utilised, an individual can consider opting for a joint loan with his spouse or parent or sibling. Thanks for the info. Most of the companies today have food coupons as part of their salary packages to help increase the take home pay of the employees.
These cards work like debit card and any amount can be swiped. Lets say that you have made a purchase of Rs.
