Perquisites - Lunch / Refreshment etc. - Rule 3(7)(iii) - Income Tax - Ready Reckoner - Income Tax

Rule 3(7)(iii) : VALUATION IN RESPECT OF LUNCH / REFRESHMENT. Etc. The value of free meals provided by the employer is taxable to the extent cost incurred by the employer as reduced by the amount recovered from the employee However, in the following cases TAXABLE VALUE of perquisite shall be taken to be NIL Free food and non-alcoholic beverages provided by such employer during working hours at office or business premises or through paid vouchers which are non transferable and usable only at eating joints if the value thereof does not exceed 50/- per meal (Taxable value shall be only in excess of 50/- per meal) or Tea or snacks provided during working hours in a remote area or an off-shore installation. Note: Above condition in respect of free food and nonalcoholic beverage provided by such employer through paid voucher shall not apply to an employee, being an assessee, who has exercised option under section 115(5)BAC. Working hours includes extended office hours (like working on holidays, overtime) The amount only in excess of ₹ 50 will be taxable.