How to save income tax on Sodexo meal coupons?

How to save income tax on Sodexo meal coupons?

201°
Missing
Deal Cadet
193
358
10

How to save income tax on Sodexo meal coupons?

CA dimers, please help…

I get Sodexo meal vouchers worth Rs. 1950 per month. Employer cuts Rs. 650 towards some meal coupons tax(i also don’t know why they cut, asked several times but No satisfactory answer).

These Sodexo vouchers are not mentioned anywhere in Form16, neither is the tax of Rs. 650 mentioned.

How can i save income tax in this scenario? I keep on reading everywhere we can save tax on Sodexo….but how? WHich section?

30 Comments  |  
11 Dimers
Missing
Deal Subedar
39
1971
21

I get similar meal card and the entire amount is not taxable and deducted from gross income. This meal coupon tax seems complete daylight robbery.

Missing
Deal Newbie
65
58
1

You are all idiots.

Your salary is reduced by the amount you get in Sodexo. So effectively you are saving tax on the amount received as sodexo vouchers.

Its as simple as that!!

Missing
Deal Cadet
173
393
4
luciferous wrote:

You are all idiots.

Your salary is reduced by the amount you get in Sodexo. So effectively you are saving tax on the amount received as sodexo vouchers.

Its as simple as that!!

it is considered as perquisite but with a limit of rs 50 per meal (or per day) as tax free coupon. Anything in excess is taxable.
In case of OP i doubt 650 is a tax but it looks like extra amount deducted by employer to give coupons. Balance 1300 may be for 26days*50 tax free.

Missing
Deal Lieutenant
194
4179
55

Costly liquor made u genius ha? laughing

Missing
Deal Cadet
173
393
4
caks2006407 wrote:

Costly liquor made u genius ha? laughing

Self Proclaimed, will find in all threads wink

Missing
Deal Newbie
65
58
1

I can’t comment on the 650rs tax untilI see the payslip of the employee.

For the tax free part you are correct about 50rs per day.

Missing
Deal Cadet
173
393
4
luciferous wrote:

I can’t comment on the 650rs tax untilI see the payslip of the employee.

For the tax free part you are correct about 50rs per day.

50rs per day transalte to 1300 per month (26days working) as tax free. But employer is giving coupons worth 1950. So balance 650 is deducted from salary.
Here comes the interesting part – employer considers this as charges paid by customer to get coupons and hence this 650 also qualifies tax free.

The rule states
Actual coupons value – amount paid by emoloyee to get those coupons = actual benefit for enployee which must be taxable in excess of 50rs per meal limit

Missing
Deal Newbie
65
58
1
Expand
insta wrote:

50rs per day transalte to 1300 per month (26days working) as tax free. But employer is giving coupons worth 1950. So balance 650 is deducted from salary.
Here comes the interesting part – employer considers this as charges paid by customer to get coupons and hence this 650 also qualifies tax free.

The rule states
Actual coupons value – amount paid by emoloyee to get those coupons = actual benefit for enployee which must be taxable in excess of 50rs per meal limit

Yes this is correct. If in excess of 50rs per day then it’s liable for tax

Missing
Deal Subedar
39
1971
21

I think its 50 per meal. My employer considers 2 meals. I get around 2500 per month which is entirely tax free

Missing
Deal Cadet
193
358
10
Expand
insta wrote:

50rs per day transalte to 1300 per month (26days working) as tax free. But employer is giving coupons worth 1950. So balance 650 is deducted from salary.
Here comes the interesting part – employer considers this as charges paid by customer to get coupons and hence this 650 also qualifies tax free.

The rule states
Actual coupons value – amount paid by emoloyee to get those coupons = actual benefit for enployee which must be taxable in excess of 50rs per meal limit

But why debit entire extra 25 rs? Tax should be on 25 in that case? And can i claim this back in ITR?

Missing
Deal Cadet
193
358
10
luciferous wrote:

You are all idiots.

Your salary is reduced by the amount you get in Sodexo. So effectively you are saving tax on the amount received as sodexo vouchers.

Its as simple as that!!

I am getting 1950 sodexo and giving back 650 cash (33.33%). How am i saving tax? If i had got it as cash i would have paid max 30% income tax.
These vouchers are part of CTC and compulsory fixed amount.

Missing
Deal Cadet
173
393
4
Expand
dhinchakrohit wrote:

But why debit entire extra 25 rs? Tax should be on 25 in that case? And can i claim this back in ITR?

U sure u paying tax on that 650?
I am sure that 650 is not counted in ur taxable salary.
So company converting ur 650 salary to sodexo and u end up saving tax.

Missing
Deal Newbie
65
58
1

Forcing employees to give back in cash is unethical. They should have given only 1300rs monthly.

Missing
Deal Subedar
5
2112
30
adrishya wrote:

I think its 50 per meal. My employer considers 2 meals. I get around 2500 per month which is entirely tax free

Where do u end up spending your Sodexo balance every month these days?

Missing
Deal Cadet
193
358
10
Expand
insta wrote:

U sure u paying tax on that 650?
I am sure that 650 is not counted in ur taxable salary.
So company converting ur 650 salary to sodexo and u end up saving tax.

650 not counted anywhere in form16

Missing
Deal Subedar
39
1971
21
Expand
sardasa wrote:

Where do u end up spending your Sodexo balance every month these days?

Mostly on bb and grofers

Missing
Deal Subedar
5
2112
30
Expand
adrishya wrote:

Mostly on bb and grofers

Bb not accepting Sodexo these days

Missing
Deal Subedar
39
1971
21
Expand
sardasa wrote:

Bb not accepting Sodexo these days

Oh. I dont have sodexo. I have edenred ticket card. But bb is accepting it so why not sodexo?

Missing
Deal Subedar
5
2112
30
Expand
adrishya wrote:

Oh. I dont have sodexo. I have edenred ticket card. But bb is accepting it so why not sodexo?

Due to covid-19 pandemic, Bigbasket is not letting users place COD orders and Sodexo is considered as COD payment mode.

Missing
Deal Subedar
39
1971
21
Expand
sardasa wrote:

Due to covid-19 pandemic, Bigbasket is not letting users place COD orders and Sodexo is considered as COD payment mode.

Cant u pay online using sodexo?

I have a friend who used to pay via sodexo till last month. Dont know whats the situation now

Missing
Deal Subedar
5
2112
30
Expand
adrishya wrote:

Cant u pay online using sodexo?

I have a friend who used to pay via sodexo till last month. Dont know whats the situation now

Not on big basket

Missing
Deal Subedar
290
1952
51
Expand
adrishya wrote:

Oh. I dont have sodexo. I have edenred ticket card. But bb is accepting it so why not sodexo?

does flipkart supermart or amazon pantry accept Ticket card?

Missing
Deal Subedar
39
1971
21
Expand
baadshah wrote:

does flipkart supermart or amazon pantry accept Ticket card?

Haven’t tried bro. But very likely no.

Missing
Deal Subedar
216
2272
39

order from dmart, they accept sodexo cards on delivery as well (be cautious as they have a machine which would be used by many)

Missing
Deal Cadet
193
358
10
srp321 wrote:

order from dmart, they accept sodexo cards on delivery as well (be cautious as they have a machine which would be used by many)

Are you sure? I dont think DMart accepts Sodexo. See link:

https://www.dmart.in/dma...aq

Missing
Deal Cadet
51
186
0
srp321 wrote:

order from dmart, they accept sodexo cards on delivery as well (be cautious as they have a machine which would be used by many)

I dont think so. I order from Dmart once in every 10 days. I have tried multiple times but they dont accept sodexo cards

Missing
Deal Subedar
216
2272
39

my bad guys, i can’t be 100% sure about it Sodexo.
but i’m sure about zeta card as i myself used it 2 weeks back.

Missing
Critic
373
3268
44
Expand
dhinchakrohit wrote:

I am getting 1950 sodexo and giving back 650 cash (33.33%). How am i saving tax? If i had got it as cash i would have paid max 30% income tax.
These vouchers are part of CTC and compulsory fixed amount.

Your real CTC is (X+1300)x12. You are getting monthly 1950 vouchers (against the “+1300”) by paying 650 for that. And your tax is calculated on X only. If your HR says that your CTC is (X+1950)x12 then they are bluffing. You can call their bluff by asking them to add the 650 as your taxable perquisite in your taxable income and calculate tax accordingly.

Missing