New Delhi, May 1 -- The tax treatment of employer-provided meal benefits has been revised under the latest income tax rules. From 1 April 2026, the tax-exempt value has been raised to Rs.200 per meal from Rs.50 earlier. The updated provisions also do not include the earlier restriction that excluded this benefit under the new tax regime, allowing wider applicability.

Meal vouchers are not classified as deductions like those under Section 80C. Instead, they fall under salary perquisite valuation rules. This essentially means that if the prescribed value is excluded before salary is taxed, it does not become taxable income at all.

The standard calculation assumes Rs.200 per meal and 2 meals per day, totalling a daily allowance of Rs.400. ...