Perquisites - Lunch / Refreshment etc. - (New) Rule 15(5)(a) / (Old) Rule 3(7)(iii)

Perquisite valuation for employer provided meals: only the excess over a de minimis per meal amount is taxable.

Perquisite valuation for employer provided meals is the employer's cost less any recovery from the employee and is taxable as salary income. Taxable value is nil for free food and non alcoholic beverages provided during working hours at office premises or via non transferable paid vouchers usable only at eating joints up to Rs. 50 per meal, with only the excess taxable. Tea or snacks in remote areas or off shore installations are also nil. The voucher exemption excludes employees opting under section 115(5)BAC; working hours include extended hours.