Sodexo Comes under Which Section of Income Tax
Hello, Our employee already provides subsidized food to the canteen, which is only on the premises. So, in this case, if the employer also provides food stamps to its employees, what would be the benefit that the employee will receive. For example, for meals of 58 rupees, the employer recovers only 28 rupees. What if an employer who provides free tea, coffee and soft drinks to his employees through paid vouchers (vendors) at his food outlet worth more than Rs 50 taxable? Can a deduction be claimed in accordance with § 80C of the Information Technology Act? What happens if they give a subsidy of up to Rs 50 for the same coffee? How does the employer decide no? meals for one day, for which vouchers should be distributed to employees. Is it limited to one or 3 for a 9-hour general quarter Hi, one of my clients received 45000 p.m now the company offers Sodexo RS coupons. 3000 p.m., which is reflected in the pay slip as a meal allowance. How much should I count for tax purposes? 45000 or 45000 – 22 days *50 = 43900 Today, Sodexo food vouchers are converted into metal cards, i.e. in digital form, which reduces the cost of printing brochures, etc. These digital forms also have security features. In which subsection the amount of the Sodexo Meal Pass is exempted in itr1.
In Form 16, it is mentioned in clause 10, but in clause 10 there are many clauses. So, please, guide me. Unless nothing in this clause applies to free food and beverages provided by that employer during working hours in offices or business premises or by means of paid vouchers that are not transferable and may only be used in restaurants, provided that, in both cases, the value does not exceed fifty rupees per meal or for tea or snacks, Provided during working hours, or for free food and soft drinks during work. hours provided in a remote area or offshore facility. Sodexo vouchers are actually paid vouchers mentioned in the booking. However, most employers do not consider the words highlighted in the condition reproduced above. Paid vouchers must be non-transferable and USABLE ONLY AT FOOD. The problem arises here because Sodexo vouchers can be used not only to eat joints, but also in other places such as supermarkets/hypermarkets (e.g. the Grand Bazaar). This means that it can also be used to buy food or other things sold by these hypermarkets. Limited daily meal voucher for food for income tax Rabate However, if it is given by the employer to the employees and is not part of the salary as a requirement, it can be considered tax exempt provided its value is less than Rs 5,000, under another rule. Rule (3)(7)(iii), which deals with these benefits, is reproduced here for consideration.
Since it is not possible to discuss all the benefits in one article, let`s discuss the tax liability of a requirement that is always questioned – the tax liability of prepaid coupons, for example, say Sodexo coupons, which are very famous. Nowadays, many employers offer Sodexo vouchers to their employees. The value of vouchers varies from employer to employer. It is observed that many of these employers, as well as their employees, believe that Sodexo vouchers are completely exempt and are not taxable as benefits, regardless of the amount. That is not a correct interpretation of the law. Employee Tax Benefit – As example 1 above, if an employee falls into the 30% tax plate category. Then they could save 660 rupees per month per month. This corresponds to Rs. 660 * 12 months = 7,920 in one year As is usually mentioned, the assessment of this condition is made taking into account the gross cost to the employer less an amount levied on the employee in this regard, i.e.: The net costs to the employer. This reduction is exempt from tax only in the amount of Rs.
50 (max) per meal during working hours. It is very important to understand that the organization`s hours of work must be taken into account in order to calculate the tax-free amount of this requirement. 1. Free food and soft drinks provided to employees during working hours on office premises or through “paid vouchers” which are “non-transferable” and “can only be used in restaurants”, provided that the value in both cases is Rs. 50 / – per meal or Therefore, strictly by the rule for paid vouchers, The intention of the legislator behind this regulation is that Sodexo (or any other prepaid coupon of this type that can also be used in places other than eating joints) are not exempt from tax, i.e. taxable benefits. “The value of free food and non-alcoholic beverages provided by the employer to an employee is the amount of that employer`s expenses. The amount so fixed shall be reduced by any amount paid or recovered from the worker for such benefit or convenience:. The value of Rs. 2,200 Sodexo vouchers is tax-free.
3. Free food and soft drinks during working hours in a remote area or offshore facility. Value of food voucher provided to employees = Rs. 250 per meal If the Indian government gives a standard flat rate deduction of 1/2K per month per employee [as in the case of medical professionals], all these unnecessary food stamp scams can be avoided because “everyone needs food daily to survive”!! · If a free meal exceeding Rs 50 per meal is provided after deducting an amount collected by an employee (as example 2 above), free food and drink will be provided to an employee. But how would the employer determine “where the employee uses Sodexo in the market (for grocery stores) or restaurants (for family dinner)”, what is the employer`s responsibility in this regard? Answer = 2 times * Rs.
