New Delhi, April 16 -- The tax treatment of meal card benefits has seen a major shift with the introduction of the latest income tax rules. From 1 April 2026, the tax-exempt limit on employer-provided meals has been increased to Rs.200 per meal, up from Rs.50 earlier. Importantly, the earlier restriction that denied this benefit under the new income tax regime has been removed.

This omission matters because tax laws are interpreted based on what is explicitly written. If a restriction is not mentioned in the provisions, it generally cannot be assumed or imposed later. Hence, people who choose the new tax regime may also benefit.

Another key aspect is that meal vouchers are not treated as deductions like those under Section 80C. Instead,...