Food Coupons | Meaning and Definition

What is a Food Coupon?

 

A Food coupon is a voucher that organizations provide to their employees so that they can eat their meals whenever they choose. Food Coupons are typically utilized by field salespeople and employees who go out of town for office-related business.

Food coupons are tax-free in nations like India. The use of food coupons is limited to two meals per day and must be done during working hours. Employer-provided meal vouchers or food coupons are non-transferable and must be used at food courts, restaurants, or other eateries. 

Meal coupons are given out at the end of the month by certain organizations and at the beginning of the month by others. We came upon a firm that gives food tickets for each quarter in advance. You have the option of issuing food coupons at any time. Employees must, however, utilize meal coupons to consume meals during working hours in order to claim tax exemption. It might be claimed that if an organization gives meal vouchers at the end of a month, the whole amount of meal vouchers provided in that month is completely taxable in that month because the meal coupons cannot be utilized for consumption in that month.