Kartheka
Hr Executive
Radhisaran
Accounts Executive
+4 Others

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Dear Friends,
I have a small query. If the company gives an allowance for Lunch, is it required to give ONLY as Sodexo coupens or can be paid as cash under "Other allowances"?
Our auditor suggest that Lunch allowance has to be provided only as sodexo and not as cash in salary splitup. Our company is not ready to give sodexo for all the employees. Even the staffs are not interested with these coupens.
Please help me regarding this matter.
Best Regards
Vandana
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Hi vadana,
This financial year onwards we started to issue the sodexho pass to employee from their salary. Because if the allowance are given in the form of sodexo means it was not coming under the tax calculation.
In case the lunch allowances given in form of other allowances means its come under the tax calculation.
For example monthly the company is giving Rs.1200 worth sodexho pass means the employee get tax exemption of Rs.14400 per year. The sodexho passes are avaialbale in different types. You can select the meal voucher not only for the restarunt bills, they can also buy the monthly provisions.
You can explain the employees regarding the sodexho tax benefit. and you can also select the employees with higher salary for example those who all are getting more than Rs.20000 like that.IF the employees are realise the benefit of tax they can surely accept the sodexho.
I think my post will be useful for u,
with regards,
radhisaran
I
Hi Vandana,
There is no any Rule that you should pay Lunch allowance only as Sodexho Coupons. You can pay by cash also or you can add in salary structure itself as Lunch allowance.
Regards,
Kakathkar.
Hi all,
As far as i knew from AY 2008-09
The lunch allowance is fully taxable. However, if u all wants to do tax planning with it then gop for free lunch facility i.e., free lunch at office it will be beneficial to both as company dont has to pay FBT and exempt in the hands of employees.
Hi Vandana
If you pay lunch allowance as cash it is fully taxable, whereas if give the same as Sodexho pass then the employees will get tax exemption. You can suggest the employees who comes under Tax slab to go with sodexho to get the tax exemption.
Rgds
Kartheka R
Dear Friends,
Doubt in HRA
A Salary Employee having own house at native & staying his parants, He lived in chennai & paid rent & he can eligible to claim HRA
Exemption fro salary computation and as well asshe can claim Interest on borrowed capital in Houseproperty income
T&R
Mohanraj.m
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