ITR 2026: Meal Card Tax Exemption Raised to ₹200 Per Meal

Starting from 1 April 2026, salaried employees in India will benefit from a major tax reform as the daily limit for tax-exempt employer-provided meal benefits increases from ₹50 to ₹200 per meal. This development, part of the revised taxation framework, is aimed at addressing inflationary pressures and rising food costs, providing employees with enhanced savings opportunities while incentivizing workplace perks. Let's dive deeper into how this exemption works, who qualifies, and how to make the most of it in your tax planning.

Who Can Claim the Exemption?

The increased meal card tax exemption is specifically applicable to salaried employees who receive meal allowances through employer-sponsored digital meal cards or vouchers. These cards must adhere to strict regulations, including being non-transferable and exclusively usable during working hours for food and non-alcoholic beverages. Self-employed individuals and employees without formal employer-provided meal benefits are not eligible for this exemption.

Why Is This Change Significant?

The hike in meal card limits from ₹50 to ₹200 is designed to align with the inflationary trends impacting food and beverage prices in India. For salaried employees, this update translates into increased tax savings, while employers can leverage this benefit to enhance employee satisfaction and retention.

The increased meal card tax exemption, effective FY 2026, represents a meaningful step towards improving workplace benefits while addressing rising food costs. For salaried employees, this change offers an excellent opportunity to save taxes, optimize disposable income, and contribute to better financial planning. Employers must ensure compliance with updated regulations to enable seamless implementation.