Sometimes, tax relief does not come as a bonus or a big refund. It comes in the form of something simple — like your daily lunch.
India’s draft Income Tax Rules, 2026 propose a major increase in the tax-free value of employer-provided meals.
And if approved, it could mean noticeable savings for salaried employees.
Tax-Free Meal Limit May Jump to ₹200
Right now, the tax-free value of employer-provided meals is ₹50 per meal.
The new draft rules propose increasing this to ₹200 per meal.
This includes meal coupons, vouchers, and food cards issued by companies like Pluxee (earlier known as Sodexo) and Zaggle.
Let’s look at the math.
If an employee receives two meals per working day:
₹200 × 2 meals = ₹400 per day
₹400 × 22 working days = ₹8,800 per month
₹8,800 × 12 months = ₹1,05,600 per year
That means up to ₹1,05,600 per year could become tax-free, compared to the current annual exemption of ₹26,400.
That is a big jump.
How Much Can You Actually Save?
The additional exemption over the current limit would be ₹79,200.
For someone in the 30% tax bracket (plus 4% cess), this could translate into savings of around ₹24,700 per year.
It may not look huge at first glance, but combined with other deductions under Sections 80C and 80D in the old tax regime, the total tax savings can become meaningful.
In short, your everyday lunch could quietly reduce your tax burden.
Old vs New Tax Regime: What’s the Catch?
Here is where things get important.
Under the old tax regime, meal vouchers remain tax-exempt up to the revised limit — if Parliament approves the draft rules.
Under the new tax regime, the situation is less clear.
Generally, most exemptions and perquisites are not allowed under Section 115BAC (the new regime).
Unless the final law specifically allows it, meal vouchers may become taxable for those who choose the new regime.
Certain benefits, however, remain non-taxable.
These include:
Meals provided during office hours inside the workplace
Tea and snacks
Food provided in remote or offshore locations
Why This Change Matters
The government appears to be encouraging structured employee benefits rather than direct salary increases.
For companies, it offers a way to improve employees’ take-home value without significantly increasing fixed salary costs.
For employees, it means a simple but steady saving.
If approved, this proposal could turn a routine office meal into a smart tax-saving tool — especially for those sticking with the old tax regime.
