New tax regime allows tax-free meal vouchers worth ₹1.05 lakh in Tax Year 2026-27; details here

As per the new rules effective from April 1, 2026, meal vouchers up to ₹200 per meal are not taxable under both the old and new tax regimes. This benefit will be applicable for Tax Year 2026-27 (FY 2026-27), starting from April 1, 2026.

Previously, meal vouchers were not tax-free under the new tax regime. And in the old regime, only up to ₹50 voucher per meal was allowed.

Considering two meal vouchers per day, an employee can get tax-free meal vouchers worth approximately ₹1,05,600 in a tax year, assuming 22 working days per month.

Rule 15 (5) (a) of the Income-tax Rules 2026 has provided for the valuation of certain tax-exempted amenities that employers can offer. These include free food and non-alcoholic beverages provided by the employer to an employee.

What the rules say

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

This provision, however, doesn't apply to:

• Free food and non-alcoholic beverages provided by an employer during working hours at office or business premises or through paid vouchers usable only at eating joints, to the extent the value thereof in either case does not exceed ₹200 per meal; or

(b) tea or snacks provided during working hours; or

(c) free food and non-alcoholic beverages during working hours provided in a remote area or an offshore installation.