Meal Coupons and Gift Cards — Tax Treatment
Food vouchers and small employer gifts are a quiet way to take part of your pay tax-free. Meal coupons are exempt up to a per-meal limit, and non-cash gifts up to a yearly limit. Bigger limits — and use in the new regime — are proposed from FY 2026-27, but these are draft rules. This page sets out where things stand today and what is coming.
Important — draft law: the higher FY 2026-27 figures (₹200 per meal and a ₹15,000 gift limit) and the idea that these can be used under the new regime come from the draft Income-tax Rules, 2026, which are not yet notified. Treat them as proposed. For FY 2025-26 the settled limits are ₹50 per meal and ₹5,000 for gifts.
Meal — FY 2025-26
₹50 / meal
up to 2 meals a day
Meal — proposed FY 26-27
₹200 / meal
draft, not notified
Gift — FY 2025-26
₹5,000 / year
₹15,000 proposed
Type
Perquisite
Rule 3(7) valuation
How meal coupons are taxed
When an employer provides food or non-transferable meal vouchers (such as Sodexo or Pluxee) usable only at eating outlets during working hours, the value is treated as a concessional perquisite and is exempt up to the per-meal limit. For FY 2025-26 that limit is ₹50 per meal; the draft Income-tax Rules, 2026 propose raising it to ₹200 per meal from FY 2026-27. A meal allowance paid in cash, by contrast, is always fully taxable.
How gift vouchers are taxed
A non-cash gift, voucher or token from your employer is exempt up to ₹5,000 in aggregate for the year; anything above that is taxable as a perquisite. The draft Rules 2026 propose raising this to ₹15,000. Gifts in cash are fully taxable regardless of amount.
| Benefit | FY 2025-26 (settled) | FY 2026-27 (proposed, draft) |
|---|
| Meal vouchers | ₹50 per meal, up to 2 meals a day | ₹200 per meal |
| Gift vouchers / tokens | ₹5,000 a year (aggregate) | ₹15,000 a year |
| New regime | Generally treated as not available | Prevailing reading: usable — but unsettled |
| Cash equivalent | Cash meal allowance or cash gift is fully taxable |
On the new regime: whether meal and gift perquisites can be used under the new regime from FY 2026-27 is genuinely unsettled. The prevailing professional reading is that they can, because the draft Rules contain no clause denying them, but there is no CBDT clarification yet. Until the Rules 2026 are finally notified, treat this as proposed rather than settled.
Related tools and guides
Frequently asked questions
Are meal coupons tax-free?
Up to a per-meal limit, yes. Non-transferable meal vouchers used at eating outlets during working hours are exempt up to ₹50 per meal for FY 2025-26 (proposed to rise to ₹200 from FY 2026-27 under draft rules). A cash meal allowance is always fully taxable.
How much gift from my employer is tax-free?
Non-cash gifts, vouchers or tokens are exempt up to ₹5,000 in aggregate for the year, with anything above that taxable. The draft Income-tax Rules, 2026 propose raising this to ₹15,000. Cash gifts are fully taxable.
Can I use meal coupons in the new regime?
This is not settled. The prevailing professional reading is that from FY 2026-27 meal and gift perquisites can be used under the new regime, because the draft Rules do not deny them — but there is no CBDT clarification yet. Until the Income-tax Rules, 2026 are notified, treat it as proposed. For FY 2025-26 they were generally treated as unavailable in the new regime.
Is the ₹200-per-meal limit final?
No. The ₹200-per-meal and ₹15,000-gift figures are proposed under the draft Income-tax Rules, 2026 and have not yet been notified. Until they are, the settled FY 2025-26 limits of ₹50 per meal and ₹5,000 for gifts apply.
This page is a general guide for individual taxpayers and is not tax advice. The FY 2026-27 figures and new-regime treatment are proposed under the draft Income-tax Rules, 2026 and are pending CBDT notification — verify the final position before relying on them. Perquisite valuation depends on your specific facts. Verify the current position on the income-tax portal or with your advisor before filing.
