Meal Voucher (Sodexo / Food Card)

What is Meal Voucher (Sodexo / Food Card)?

Meal vouchers are pre-paid cards or coupons that employees can use at food outlets and groceries. Under Rule 3(7)(iii) of the Income Tax Rules, the value is a non-taxable perquisite up to ₹50 per meal for working hours, capped at 2 meals per day, roughly ₹2,200/month for 22 working days. Sodexo, Zaggle, and similar providers run the programme. Employees save tax in the old regime because the salary loaded on the card does not show up as taxable income. The new regime removed this exemption, so meal vouchers issued to employees opting for the new regime are taxable as perquisite. Some employers have shifted away from meal cards because most employees moved to the new regime.

Example

Old regime employee gets ₹2,200/month on meal card = ₹26,400/year, fully tax-free. At 30% slab, tax saved = ~₹8,000/year. Same employee on new regime, the ₹26,400 is taxable, no saving.

How Meal Voucher (Sodexo / Food Card) is used

Run meal voucher loading through payroll only for old regime employees if you want to keep the perk meaningful. Get a regime declaration at the start of the year to set up the right structure.

Meal Voucher (Sodexo / Food Card) FAQs

Is meal voucher tax-free in new regime?

No. The exemption is only available under the old regime.

How much can I get tax-free on meal cards?

Up to ₹50 per meal x 2 meals x working days, around ₹2,200/month for 22 days, in old regime.

Can I withdraw cash from a meal card?

No. Cards are restricted to food and grocery merchants, otherwise the tax exemption fails.