ITR Filing 2026: Who Can Claim Meal Card Benefit Before 31 July?
Summary: A small change in tax rules can save salaried employees thousands of rupees each year. The new meal card tax-exemption rules effective from 1 April 2026 increase the tax-free value per meal to ₹200. But eligibility is confusing, especially with the switching of tax regimes. This guide explains who can actually claim the benefit for ITR filing 2026, how to report it, and how to avoid mistakes that trigger tax notices.
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| ITR Filing 2026: Who Can Claim Meal Card Benefit |
A simple benefit many salaried people forget
Riya, a young IT employee, received a meal card from her company. She used it daily at the office cafeteria without a second thought. When she filed her ITR last year, she was shocked to learn she had missed claiming a tax-free allowance that could have saved her over ₹9,600. She wasn’t alone. Many salaried workers misunderstand how meal cards work or think the exemption is automatic.
The government has now revised the rules. The tax-exempt value is increased from ₹50 to ₹200 per meal starting 1 April 2026. The change seems small, but it affects millions of employees and directly influences ITR filing for FY 2025–26 and FY 2026–27.
This article breaks down the new guidelines in simple language so you know exactly what to claim and when.
What the meal card rule actually means
The government clarified that a meal benefit is not a deduction like Section 80C. It is part of salary perquisite valuation rules, meaning:
- If your employer excludes the approved value from taxable salary,
- It never becomes taxable income,
- And you don’t need to “claim” it like a deduction.
From FY 2026–27, employers can exempt:
- ₹200 per meal
- 2 meals per working day
- ₹400 total per day
The exemption applies only on working days, and covers food + non-alcoholic beverages.
Who can claim meal card benefit for ITR Filing 2026?
This is where confusion begins. The eligibility changes depending on the financial year and chosen tax regime.
Situation 1: ITR filing before 31 July 2026 (for FY 2025–26)
Only employees under the old tax regime can claim the benefit.
Situation 2: ITR filing for FY 2026–27 and later
The benefit becomes available under both old and new regimes, thanks to changes introduced under the Income Tax Act, 2025.
Who is eligible?
Salaried employees who receive meal cards from service providers like:
- Sodexo
- Pluxee
- Zaggle
Employers reflect the benefit in Form 16 as a non-taxable perquisite. The taxable part (if any) appears in Part B of Form 16.
Tax expert Siddharth Maurya (Founder & MD, Vibhavangal Anukulakara Pvt Ltd) says:
“Employees often notice mismatches between salary slips and Form 16. It is important to reconcile both before filing the return. Any exempt perquisite must match the value listed in Form 16 to avoid errors.”
Read Also: Gift tax rules: When cash, jewellery, wedding gifts & property turn taxable
How to check if you even have a meal card benefit
Many employees don’t know they have a meal card component. Check these three places:
1. Salary slip
Look for entries like:
- Sodexo
- Meal card
- Food allowance
- Pluxee/Zaggle prepaid card
2. CTC Structure
Your CTC breakup will show it under flexi benefits or allowances.
3. Form 16
If the employer gave meal benefits, the exempt amount appears under “Exempt Perquisites”.
If confused, simply ask HR or check your prepaid card balance in the HR portal.
How to report excess meal card amount
The limit is ₹200 per meal, ₹400 per day.
If your employer credited more than this:
- The excess becomes taxable salary.
- It should ideally be included in Form 16.
If your employer forgets:
You must manually show it under “Income from Salary” while filing your ITR.
Failing to do so may trigger a mismatch with AIS/Form 16 or lead to future scrutiny.
Key differences before and after April 2026
Here’s a quick comparison to make it easy:
Meal Card Tax Rules (Old vs New)
| Feature | Before 1 April 2026 | After 1 April 2026 |
|---|---|---|
| Tax-free value per meal | ₹50 | ₹200 |
| Max meals per day | 2 | 2 |
| Daily limit | ₹100 | ₹400 |
| Allowed in new regime? | No | Yes |
| Applies on working days only? | Yes | Yes |
| Benefits for ITR FY 2025–26 | Only old regime | Both regimes (from FY 2026–27) |
Why this rule matters for salaried employees
A higher exemption means real savings.
Example:
A company offers meal allowance worth ₹400 per day for 22 working days.
- 22 × ₹400 = ₹8,800 per month
- Yearly savings = ₹1,05,600 tax-free
If taxed under the 20% slab, that’s ₹21,120 saved yearly.
Many employees unknowingly pay tax on this amount because they don’t check Form 16 or salary slips carefully.
Common Mistakes to Avoid
People often skip small allowances without realizing they matter. Here are the mistakes to avoid:
● Assuming new regime always denies exemptions
Not true anymore from FY 2026–27.
● Not reconciling salary slip and Form 16
Leads to mismatches and wrong tax filing.
● Thinking meal card benefit is a deduction
It is a perquisite exemption, not a deduction.
● Using meal card on non-working days and expecting exemptions
Only working days count.
● Not reporting excess benefit
This may cause scrutiny.
What You Should Do Now
Here’s what every salaried taxpayer must do before filing ITR 2026:
1. Confirm your tax regime
For FY 2025–26: choose old regime to claim this benefit.
For FY 2026–27: both regimes allow it.
2. Check employer entries
Look for meal card values in:
- Salary slip
- CTC sheet
- Form 16 (especially Part B)
3. Verify working days calculation
Exemption applies only for actual working days.
4. Report excess amount
Declare additional perquisite in the salary section if employer missed it.
5. Keep documents ready
ITD may ask for supporting documents during scrutiny.
Read Also: When Do NRIs Pay Income Tax in India? Full Guide
FAQs
1. Do I need to upload receipts for meal card usage?
No. Employers maintain records. Taxpayers only report exempt values.
2. Can I claim the meal card benefit if I work from home?
If the employer counts WFH as a working day and allows meals, exemption applies.
3. What if my employer gives cash instead of a card?
Cash reimbursements are fully taxable.
4. Is the exemption automatic?
Only if the employer adjusts salary correctly. Otherwise, you must report it manually.
5. How much can I save per year?
Up to ₹1,05,600 of income can become tax-free.
Conclusion
Meal card benefits seem small, but they add up. The rule change from April 2026 makes the exemption more generous and accessible in both tax regimes. Salaried workers who ignore these details often lose money without realizing it. Spend a few minutes checking Form 16, salary slips, and your chosen tax regime. It can save you thousands by 31 July 2026.
Disclaimer
This article is for educational and informational purposes only.
EduTaxTuber and its affiliates are not responsible for any financial decisions made based on this information. Consult a qualified tax professional for personalised advice.
