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Salaried Employees: Maximize Income Tax Savings with Meal and Fuel Cards
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Meal & Fuel Cards: Save Big on Income Tax with New Rules & Benefits
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Moneycontrol
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13-03-2026, 17:00
Meal & Fuel Cards: Save Big on Income Tax with New Rules & Benefits
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Draft Income Tax Rules, 2026, propose increasing tax-free meal voucher limit from Rs 50 to Rs 200 per meal.
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This could boost annual tax-free benefits from Rs 26,400 to Rs 1,05,600, saving up to Rs 24,710 annually for top earners.
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Meal card exemption currently applies only to employees opting for the old tax regime.
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Fuel cards and corporate expense cards offer tax-efficient alternatives to cash reimbursements, reducing administrative complexity for companies.
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While beneficial, card-based systems face challenges in Tier 2/3 cities and for gig workers due to limited acceptance.
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