Skip to content
PerkNavigate logoPERKNAVIGATE

Meal Voucher Tax Savings Calculator

Short answer

The tax-free value of employer-provided meals is ₹200 per meal from 1 April 2026, up from ₹50. On the default inputs (₹200 a meal, 2 meals a day, 22 days a month) ₹1,05,600 a year is tax-free, saving about ₹32,947 in the 30% slab with 4% cess. Check with payroll whether it applies in the new regime.

Last checked · 2 key figures from the fact register

Key facts

Key facts on this page with their source and the date each was checked
FactValueSourceDate checked
Tax-free meal value₹200 per meal (earlier ₹50) from tax year 2026-27 Reported by reputable sourcesKPMG flash alert 2026-081 (opens in a new tab)
Meal exemption in the new regimeContested; widely read as available in both regimes ContestedTaxmann: meal voucher tax benefit under new regime (opens in a new tab)

The tax-free value of employer-provided meals rose to ₹200 per meal from 1 April 2026, from ₹50. Enter the voucher value, how many meals a day and how many working days, and see the tax-free total and the tax saved. Check with payroll whether it applies in the new regime.

₹200 from 1 April 2026 (earlier ₹50). Whether it applies in the new regime is contested; confirm with payroll.

Estimated tax saved per year

₹32,947

Tax-free vouchers per year
₹1,05,600
Taxable because above the limit
₹0

How it is calculated

  • Tax-free value per meal = the lower of the voucher value and the limit
  • Tax-free per year = that value × meals per day × working days × 12
  • Tax saved = tax-free value × slab rate × 1.04 (4% cess)
  • Whether the benefit works in the new tax regime is debated. Check with your payroll team first.

Estimates for information only; not financial, tax or legal advice.

Worked example

Example (the default inputs): ₹200 a meal, 2 meals a day, 22 days a month. Tax-free vouchers are ₹1,05,600 a year. In the 30% slab with 4% cess, the saving is about ₹32,947. At a ₹250 voucher, the extra ₹50 a meal would be taxable.

Frequently asked questions

Does it work in the new tax regime?

This is debated. Some advisers say yes because it is a valuation rule. Others say it is limited to the old regime. Ask your payroll team.

Are meal vouchers cash?

No. They can be used only for food and non-alcoholic drinks. Take them only if you would spend that on food anyway.

Is the ₹200 limit final?

It comes from the Income-tax Rules, 2026 per secondary sources. Confirm it in the Rules.

Related perks

Sources and status

Each figure on this page comes from the fact register. What the badges mean.

  • Reported by reputable sourceschecked 2026-10-16

    Free food or non-transferable meal vouchers: 200 per meal (earlier 50), from tax year 2026-27, final Rules

    KPMG flash alert 2026-081

  • Contestedchecked 2026-10-16

    Whether the meal exemption applies in the new regime is contested. The old Rule 3(7)(iii) had a proviso excluding the new regime; commentators (Taxmann, ClearTax) read the new rule as having no such proviso. Widely interpreted as available in both regimes; confirm with your employer's payroll

    Taxmann: meal voucher tax benefit under new regime

Government employee? Find your salary by pay level and see 8th Pay Commission scenarios.

Estimates for information only; not financial, tax or legal advice. Disclaimer.