The Sodexo Meal Card—also known as the Pluxee Meal Benefit in India—is a prepaid card offered by Sodexo, a global leader in food services and employee benefits. It is provided by employers as part of an employee’s compensation package to help cover food and non-alcoholic beverage expenses, making everyday meals more affordable and tax-efficient.
What is a Sodexo Meal Card?
Sodexo (Pluxee) Meal Card – Tax Benefits
The tax advantages of Sodexo Meal Cards—now known as Pluxee Meal Benefit in India—vary based on the country and the applicable tax framework. Below is an overview of the current tax treatment:
India:
Under the Old Tax Regime:
Employees were eligible for a tax exemption of up to ₹2,000 per month, or ₹24,000 per year, on meal vouchers. This allowance effectively reduced their taxable income and served as a popular salary component.
Under the New Tax Regime (Post Finance Act 2023):
The revised regime discontinues most exemptions and deductions, including those for perquisites such as food coupons. As a result, employees opting for the new tax structure cannot claim tax benefits on Sodexo Meal Cards.
Note: For personalized advice, it’s best to consult a qualified tax professional.
Other Countries:
Tax policies on meal cards differ across regions:
In countries like Singapore, meal benefits may still qualify for tax exemptions under certain conditions.
In others, Sodexo cards function purely as cashless food payment tools without offering any specific tax relief.
Sodexo Meal Card Tax Exemption: A Detailed Overview
India-Specific Guidelines
1. New Tax Regime (Applicable from FY 2023-24):
No tax exemption is available for Sodexo Meal Cards under the new tax structure.
The amount loaded onto the card is fully taxable as part of the employee’s salary.
This regime eliminates most perquisite-based exemptions, including food coupons.
2. Old Tax Regime (For Those Who Opt for It):
Employees can still claim an exemption of up to ₹12,000 per year (₹1,000 per month) on food purchased using the Sodexo Meal Card.
Note: The exemption only applies to meals or food items. Purchases of groceries or non-food items are not covered.
Understanding the Exemption Limit (Old Regime):
The ₹12,000 annual limit is cumulative for all types of employer-provided meal benefits (meal cards, vouchers, etc.).
If multiple benefits are received, their combined value must remain within the specified cap to qualify for full exemption.
Key Takeaways for Employees in India:
Stay informed about changes in tax laws and choose your tax regime accordingly.
If eligible and opting for the old regime, ensure your food-related benefits stay within the exemption threshold.
Consider consulting your HR or a tax advisor to explore other tax-efficient employee benefits.
Global Context:
Tax treatment of meal cards varies by country.
In some regions, such as Singapore, meal benefits may still be partially or fully tax-exempt.
In others, they may serve only as convenient payment tools with no associated tax benefits.
Always consult local tax professionals or Sodexo program administrators for country-specific rules
Frequently Asked Questions (FAQs)
1. Is Sodexo included under Section 80C deductions?
No, Sodexo meal cards do not qualify for deductions under Section 80C of the Income Tax Act. Section 80C primarily covers investments such as Public Provident Fund (PPF), Employee Provident Fund (EPF), life insurance premiums, and other specified savings instruments.
2. How much tax can I save using a Sodexo meal card?
Your tax savings depend on the tax regime you have opted for:
Old Tax Regime: You can claim a tax exemption of up to ₹12,000 per year (₹1,000 per month) on food purchases made using the Sodexo card. Note that this applies only to meal expenses, not groceries or non-food items.
New Tax Regime: No tax exemption is allowed. The amount loaded onto the Sodexo card is treated as fully taxable income
3. Is TDS applicable on Sodexo meal cards?
No, Tax Deducted at Source (TDS) is not directly applied to Sodexo meal card usage. However, under the new tax regime, the amount credited to the card may be added to your taxable income, which will be considered during overall TDS calculations on your salary.
4. Are Sodexo meal cards tax-free under the new tax regime?
No, Sodexo meal cards are not tax-exempt under the new tax regime. The total value loaded on the card is treated as a taxable perquisite and included in your gross salary.
