A small change in tax rules could make your daily office lunch more valuable.
India’s Draft Income Tax Rules, 2026 propose increasing the tax-free limit on employer-provided meals from ₹50 per meal to ₹200.
If approved, this could significantly boost tax savings for salaried employees.
How Much Can You Save?
Right now, employees can claim tax exemption on meal vouchers worth ₹50 per meal.
If you receive two meals a day, the current yearly tax-free amount comes to ₹26,400.
Under the proposed rules, the exemption would rise sharply.
Here’s how the math works:
₹200 per meal
2 meals per day = ₹400
₹400 × 22 working days = ₹8,800 per month
₹8,800 × 12 months = ₹1,05,600 per year
That means the annual tax-free benefit could jump to ₹1,05,600.
The extra exemption compared to the current limit would be ₹79,200.
For someone in the 30% tax bracket (plus cess), this could mean savings of around ₹24,000 to ₹25,000 per year.
It may not look huge at first glance, but over time, it adds up.
Old vs New Tax Regime: What You Should Know
The benefit mainly applies under the old tax regime.
If you opt for the old regime, meal vouchers up to the revised limit can remain tax-free, provided Parliament clears the draft rules.
Under the new tax regime, things are less clear.
Generally, most exemptions are not available under Section 115BAC, which governs the new regime.
Unless the final law specifically allows it, meal vouchers may become taxable under the new system.
However, certain meal benefits will continue to remain tax-free.
These include:
Food provided during office hours on company premises
Tea and snacks
Meals in remote or offshore work locations
Why This Matters for Employees
The government appears to be encouraging structured employee benefits.
By increasing the tax-free meal allowance, companies can improve employees’ take-home value without significantly raising salaries.
On their own, meal vouchers may not drastically reduce your tax burden.
But when combined with other deductions like those under Sections 80C and 80D, they can make a noticeable difference.
In simple terms, if the proposal becomes law, your daily office meal could quietly turn into meaningful annual savings.
