Meal Voucher Tax Rules: ₹50 vs ₹200 Exemption Explained for FY 2025–26

The distinction between ₹50 and ₹200 meal voucher exemptions has created widespread confusion among salaried taxpayers filing income tax returns for FY 2025–26. Many employees received higher meal benefits during the year, assuming full tax exemption.

However, the enhanced exemption does not apply to the current assessment cycle. Understanding the applicable rules is essential to correctly report taxable salary.

Why the ₹200 Meal Voucher Limit Does Not Apply Yet

The confusion arises from revised provisions under the Income‑tax Rules that increased the meal voucher exemption limit. Under the updated framework, the exemption has been raised to ₹200 per meal.

However, this change is prospective and becomes effective only from FY 2026–27 onwards. For FY 2025–26, the enhanced limit is not applicable while filing current income tax returns.

Applicable Exemption for FY 2025–26 Explained

For FY 2025–26, the exemption continues under the earlier rules. Only ₹50 per meal qualifies as tax‑free and only where the employee opts for the old tax regime.

Even if an employer provides ₹200 per day through meal cards or vouchers, the excess ₹150 is taxable. This amount is treated as a perquisite and added to salary income for tax computation.

Role of Old and New Tax Regimes

The tax regime chosen by the employee plays a critical role in determining eligibility. Under FY 2025–26, meal voucher exemption is not available at all under the new tax regime.

Employees choosing the new regime cannot claim even the ₹50 exemption. The extension of meal voucher benefits to both regimes will take effect only from FY 2026–27 along with the higher ₹200 threshold.

Rule 15 and Its Prospective Impact

Rule 15(5)(a) of the Income‑tax Rules, 2026 provides the legal basis for the revised exemption structure. It specifies an exemption of up to ₹200 per meal and extends eligibility to taxpayers under both tax regimes.

Importantly, the rule clearly states that the enhanced benefit applies from tax year 2026–27 onwards. Any amount exceeding the applicable threshold for earlier years continues to remain taxable as a perquisite.

Form 16 and Reporting of Meal Vouchers

Another source of misunderstanding is the absence of a separate disclosure for meal vouchers in Form 16. Part B of Form 16 does not list meal vouchers independently.

Instead, their taxable portion is included within total perquisites under Section 17(2). Employees should refer to Form 12BA and detailed salary break‑ups to identify the treatment of such benefits while reporting income under the ‘Schedule Salary’ in their returns.

Read More: Meal Vouchers for Salaried Employees Now Tax-Free Up to ₹1.05 Lakh.

Conclusion

For FY 2025–26, the meal voucher exemption remains capped at ₹50 per meal and is available only under the old tax regime. The higher ₹200 exemption and availability under both regimes apply only from FY 2026–27.

Employees must not assume full exemption based on benefit value alone or Form 16 presentation. Accurate reporting requires careful review of salary documents, tax regime selection, and applicable rules for the relevant financial year.

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