If your employer loads money onto a Pluxee, or Zaggle meal card each month, you already know the routine — swipe it at lunch and move on with your day.
For those who aren’t familiar, these are food coupons prepaid by your employer specifically for purchasing meals during working hours. Whether it’s a proper sit-down lunch or a quick samosa and chai between meetings, these cards cover it. They come in different forms: digital meal cards, prepaid food cards, meal vouchers, or physical coupons. But the idea is the same.
You can use them at restaurants, food courts, cafeterias, or grocery stores that accept your specific meal card provider.
But wait, are these even taxable?
The value loaded on these cards is part of your salary structure. But it can qualify for a tax exemption within certain limits, meaning a chunk of it doesn’t get added to your taxable income at all.
Why does this exemption exist?
Under Indian tax law, anything your employer gives you beyond your basic salary, such as a car, a laptop, or free meals, is called a perquisite. And perquisites are generally taxable.
However, the government created an exception for meal cards. Feeding employees is recognised as a legitimate business expense, and taxing every rupee of a lunch benefit felt excessive. So they established a safe zone: if the benefit is provided through a non-transferable, prepaid meal card (not cash, groceries, or alcohol — just food), part of it would not be taxed at all.
Here’s what most people don’t realise though: that tax-free limit on that card hasn’t changed in years. You’ve been capped at ₹50 per meal since long before a decent plate of dal-chawal costs anywhere in a city today.
And now, finally, that’s changing.
What’s actually changing?
The tax-free limit on employer-provided meal cards is increasing from ₹50 per meal to ₹200 per meal, effective 1 April 2026.
That’s a 4x jump. Here’s what that actually means in rupees:
| Particulars | Until 31 Mar 2026 | From 1 Apr 2026 |
|---|---|---|
| Tax-free limit per meal | ₹50 | ₹200 |
| Per day (2 meals) | ₹100 | ₹400 |
| Per month (22 working days) | ₹2,200 | ₹8,800 |
| Per year | ₹26,400 | ₹1,05,600 |
| Tax saved per year (30% slab + 4% cess) | ≈ ₹8,237 | ≈ ₹32,963 |
That extra ~₹24,000 in annual tax savings doesn’t require you to earn more. It just requires your salary to be structured right.
Source: Rule 15(5)(a), Table IV, Draft Income-Tax Rules, 2026. Published by CBDT on 7 February 2026. Read the official draft here
Does your meal card qualify?
Not every food-related benefit gets this treatment. The government is specifically protecting a genuine meal bought during work hours. Here’s what the rules say must be true:
- Your meal must be paid using a non-transferable, prepaid meal card such as Sodexo/Pluxee, Zeta, Zaggle, or similar platforms. Cash reimbursements don’t qualify, no matter how they’re labelled in your salary slip.
- The card can only be used at eating joints like restaurants, canteens, and food courts. Not for groceries you’ll cook at home, and definitely not for alcohol.
- The meals need to happen during working hours.
- If your employer has an on-site canteen, meals served there are fully exempt with no per-meal cap at all.
- This only works if you’re on the old tax regime. More on that below.
Old regime vs new regime — which one are you on?
The new tax regime is now the default in India. If you haven’t opted for the old regime, you’re probably on the new one, and currently the meal card exemption applies only under the old regime.
Not sure which regime you’re on? Check your last salary slip or ask your HR. If you’ve never actively opted for the old regime, you are most likely on the new one.
| Particulars | Old tax regime | New tax regime (default) |
|---|---|---|
| Meal card exemption | Yes, ₹200/meal (proposed) | Unclear, pending final rules |
| HRA exemption | Yes | No |
| Section 80C deductions | Yes | No |
| Standard deduction | ₹50,000 | ₹75,000 |
You see, it all comes down to your deductions. The more you have — HRA, home loan interest, PPF, meal cards — the more the old regime makes sense for you, even with the lower standard deduction. But run the numbers for your specific situation before deciding.
Frequently asked questions
1. I work from home. Can I still use a meal card?
Yes, the exemption is tied to the delivery mode, not where you work. As long as your benefit comes through a prepaid meal card and is used at a valid eating joint, remote employees qualify just as much as office-goers.
2. My employer loads ₹300 per meal on my card. Is the full amount tax-free?
Only ₹200 per meal qualifies for the exemption. The remaining ₹100 per meal gets added to your taxable salary as a perquisite. So structuring the card at exactly ₹200 per meal is the sweet spot.
3. My company gives me a cash food allowance instead. Is that the same thing?
No, and this is a common mix-up. Cash allowances regardless of what they’re called in your salary slip — are fully taxable. The exemption applies only to non-transferable, prepaid meal cards or vouchers. If your company pays you cash for food, there is no exemption.
If you have questions, drop them below.