Sodexo Meal Card Tax Exemption: ₹200 Per Meal Rule Under the Income Tax Act 2025

Now known as the Pluxee Meal Benefit in India, the Sodexo card is being accepted across 1,700 cities and towns at more than 1,00,000 establishments across the country. As the deduction is made from your hand salary, the card is provided by most employers as an optional benefit, which is not provided on request. 

Rs. 200 Meal Coupon Exemption under Income Tax Act, 2025

As per the provisions of the Income Tax Rules, 2026, Meal coupon exemption has been increased from Rs. 50 to R. 200 per meal. This in turn increases the annual meal coupon exemption to Rs. 1,05,600 from the existing limit of Rs. 26,400. 

This increased exemption can be claimed for income earned from FY 2026-27. Therefore, this increased exemption is not available for FY 2025-26.

What is a Sodexo Meal Card?

The Sodexo meal card is a form of perquisite provided by companies to their staff. The prepaid card allows employees to buy food, groceries, and soft drinks without paying out-of-pocket at the point of purchase. The value loaded on the card, however, is added to the employee's Cost to Company (CTC). The employee must opt for meal cards to avail tax benefits out of them.

The tax exemption for these food cards are covered under the concept of ‘meal coupon exemption’ under the provisions of the Income Tax Act.

Sodexo Meal Card Tax Benefits

Most employees think Sodexo meal cards are free from tax liability. However, this is not true wholely. As per Section 17(2)(viii) of the Income Tax Act, free meal cards are taxable if the amount spent per meal exceeds Rs.50. Employees must pay taxes for the amount exceeding Rs.50 per meal. However, this exemption will be available only in the old tax regime and will be taxable in the case of the new tax regime.

A calculation based on 22 working days and 2 meals a day results in a monthly benefit of Rs.2,200 (22*100). Consequently, the yearly exemption works up to Rs.26,400.

However, if your company provides free food or snacks during working hours in office premises or a business organization, that is not liable for taxation. Thus, the tax-free amount of this meal card also depends on the working hours of your organization.

Upon availing Sodexo meal card, you must select an expense limit, which is the maximum expense you can make through the card. The company will add this fixed amount to your CTC and deduct it from your in-hand salary.

If the employer provides meal vouchers at a discounted rate, the value exceeding ₹50 per meal is taxable. For instance, if a meal voucher is worth ₹500 and the employee pays ₹150, the taxable perquisite is calculated as follows:​

Voucher value exceeding ₹50: ₹500 - ₹50 = ₹450

Amount paid by the employee: ₹150

Taxable perquisite: ₹450 - ₹150 = ₹300​

Therefore, ₹300 would be added to the employee's taxable income.

Income Tax Act 2025 Update

As per the provisions of the Income Tax Act, 2025 read with the relevant provisions of the Income Tax Rules, 2026, The meal coupon exemption is now increased from Rs. 50 per meal to Rs. 200 per meal. This effectively increases the annual exemption limit from Rs. 26,400 to Rs. 1,05,600. 

Also, the specific proviso in the old provisions, restricting the meal coupon exemption to the old regime, is absent in the new Income Tax provisions. Therefore, it can be interpreted that the meal coupon exemption can be claimed under the new tax regime as well, as per the provisions of the new Income Tax Act. 

The following tax computation shows the incremental tax benefit under the provisions of the new Income Tax Act.

Tax Comparison under the Old Regime

The increased exemption limit has saved taxes of Rs. 24,710 in this case.

Tax Comparison under the New Regime

Since the meal coupon exemption is not available as per Income Tax Act, 1961, and available as per the 2025 Act, the tax savings in this case is Rs. 22,844.

Sodexo Meal Card Tax Exemption

Now that you know what a Sodexo meal card is, you should know about its tax exemptions as well. The following meals are eligible for a tax exemption under the Sodexo meal card:

• Food and non-alcoholic beverages are offered by your employer within your working hours in an offshore installation or remote area.
• Non-alcoholic beverages like tea, coffee, and snacks provided during working hours are categorised as tax-free.
• Employer offering food through non-transferable paid vouchers that can be used only at food joints or in office premises is exempted from tax liability (the cost per meal should be within Rs.50).

Final Word

So, now you know how the Sodexo meal card saves tax, you can avail it from your employer based on your benefits. Though tier-2 and -3 cities may not broadly accept these meal cards, it can be beneficial for those living in tier-1 cities. Sodexo Meal Cards can offer tax benefits, it's crucial to ensure they are used in compliance with the specified conditions to avail of exemptions. Employees should consult with their employers or tax professionals to understand how these benefits apply to their specific situation.