Income Tax Rule: A big relief news has come for salaried employees. After the implementation of the new Income Tax Rules, 2026, the tax exemption limit on meal coupons, meal cards (such as Sodexo/Pluxee, Zaggle) or subsidized food available in office canteens has increased significantly. While previously this exemption was limited to just ₹50 per meal, it has now been increased to ₹200 per meal. Millions of employees will directly benefit from this.

what is the detail

Simply put, an employee can now receive tax-free benefits of ₹200 each for two meals (lunch and dinner), or up to ₹400. Assuming approximately 22 working days per month, this translates to a tax exemption of ₹8,800 per month and ₹1,05,600 annually. This means that if meal benefits are included in your salary structure, you could save over ₹100,000 annually.

Will it be available in the new tax regime also?

However, a major question remains: will this benefit be available under the new tax regime? Experts have differing opinions on this matter. Some tax experts believe that there are no clear restrictions on this in the new rules, so this exemption can be available under both tax regimes (old and new). Other experts argue that the new tax regime generally does not allow exemptions for allowances and privileges, so the benefits of meal vouchers will not be available under these rules.

Another interesting thing is that this benefit depends on your number of working days. If you work 5 days a week (approximately 22 days a month), you can get a deduction of up to ₹1.05 lakh annually. However, if you work 6 days a week (approximately 26 days), this benefit can increase to approximately ₹1.24 lakh. This means that the more working days you work, the greater the tax benefit.

There is also news for those working from home.

There’s also good news for those working from home. According to experts, if your company’s policy includes meal benefits, you can still take advantage of this benefit while working from home. This means that going to the office isn’t necessary; the only condition is that this benefit is part of your CTC.

Overall, meal vouchers can now become a smart tax planning tool under the new tax rules. If your salary is between ₹15 lakh and ₹30 lakh, you can save a significant amount of tax by structuring them correctly. However, it’s best to consult your HR or tax advisor before making a final decision, as there’s still some confusion regarding the interpretation of the rules.