Expenditure on food or beverages provided to the employees by employers--Extent to be treated as entertainment--Section 37(2) of the Income-tax Act, 1961--Instructions regarding

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..... uctions regarding. Circular No. 708 Dated 18/7/1995 To All Chief Commissioners of Income-tax. All Directors-General of Income-tax. Sir, Reference is invited to the Board's Circular No. 644, dated 15th March, 1993 (F. No. 204/10/93-ITA.II) (see [1993] 200 ITR (St.) 226), wherein it was clarified that the expenditure on provision of food or beverages by an employer to the low-paid .....

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..... neness of the expenditure. In case the expenditure exceeds the above limit, only the excess over Rs. 35 per day per employee shall be treated as entertainment in nature within the meaning of the Explanation under section 37(2) of the Act. In the hands of the employees, however, the amount shall be treated as income subject to the provisions of section 17 of the Act. 3. This circular shall apply .....

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