My employer provides me free meal in office. What is the taxability?

The value of free food and non-alcoholic beverages provided by the employer to an employee shall be the amount of expenditure incurred by such employer.
The amount so determined shall be reduced by the amount, if any, paid or recovered from the employee for such benefit or amenity:

However, the following would not be treated as a perquisite –

  • Free food & non-alcoholic beverages provided by employer during
    • working hours at office or business premises or
    • through paid vouchers which are not transferable & usable at only eating joints limited to Rs. 50 per meal each day are exempt from tax in the hands of employee & is tax free perquisite.
  • tea or snacks provided during working hours is tax free perquisite.
  • free food and non-alcoholic beverages during working  hours provided in a remote area or an off-shore installation is tax free perquisite.

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