Following are exempt

(1) Tea/ Coffee / Snacks provided to Employees during office hours.

(Only non alchoholic beverages covered here)

(2) Food provided to Employees during office hours.

(a)In Remote area  → No Limit

(b)In Other Cases  → Rs.50/- per meal

If provided through paid meal vouchers which are non transferable, then also exempt.


However all other cases are taxab le like

1 .Alcoholic Beverages

2.Food greater than Rs.50/- per meal  (If Rs.60 per meal then balance Rs 10 taxable)

3.Food provided After Office hours is taxable

4.Meal vouchers which are transferable

In all above cases, Cost of food less any amount Recovered will be taxable.





  Mr  Ajay receives basic salary of Rs.50000 P.M

  He also gets free food at office, cost of food per meal is Rs.80/- and he works for 300 days

 Calculate Income from Salaries


Basic salary = 50000  ×  12  =  600000

 Free food Perquisite  =  (80  –  50)  ×  300

                                                      =  9000

 Income from salary  =   600000+9000=609000




Suppose the company charges Rs.20 per day from Ajay regarding meal in Q1


  Free food Perquisite   =  9000  –  (20 × 300)

                                       =  9000  –  6000

                                       =  3000

    Income from salary  =   600000+3000=603000 



Suppose free coffee is provided every day cost = Rs.10 per coffee for 300 days



Tea and Snacks provided during office hours are exempt   even similar refreshment like coffee is Exempt as per CBDT Circular





Solve Q1 Assuming Employee is posted in remote area and get free food per day @80/plate for 300 days


 If food provided in remote areas than fully exempt without limit .

          Basic salary = 50000  ×  12  =  600000

         Free food Perquisite  =  Exempt

          Income from salary  =   600000+0=609000






  1. Income Tax
  2. Income from Salaries
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CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 6 years. He provides courses for Practical Accounts, Taxation and Efiling at .