Meal allowance

Meal allowance for employee tax savings

Swipe Pazcard at any food outlet in India to use meal allowance. 100% RBI-compliant. Swipe, dine, and save with your food allowance.


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Explore meal allowance with our experts

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What is meal allowance?

A food allowance or meal allowance refers to a specific amount of money in the form of coupons or card provided to employees by employers. It is a tax-saving allowance and is a part of the employee’s salary.

The purpose of food allowance is to allow tax exemption on food expenses an employee incurs up to a certain amount.

What is meal allowance exemption?

Employers can add meal allowance in the salary of employees as a flexible benefit component. The government allows tax exemption of up to ₹2200 on food expenses. It ultimately means ₹2200 spent on food by employees is non-taxable.

What is food coupon allowance?

Food coupon allowance is giving food coupons to employees that are worth the allowance fixed by the government. Employees can use the food coupons at food outlets to pay.

For example, an employee can be given food coupons worth ₹2200 that they can use to buy food and non-alcoholic beverages.

Is the money credited for food allowance tax free?

Yes, the money credited to the food wallet (meal allowance) is tax-free. As per the Income Tax Act Section 17(2)(viii) for food allowance, meal coupons up to ₹50 per meal are tax exempted.
For instance, if a salaried employee works 22 days a month and has an allowance for 2 meals a day, then the monthly food allowance will be 100*22=₹2200.

Limit by government Calculation
₹50/ meal
2 meals/working day
₹50 x 2 x 22 (working days) = ₹2200

How easy is providing meal allowance with us?


💳 Employees get Pazcard. They activate it by doing KYC.


💰 When payroll is processed monthly, the food wallet in Pazcard gets topped up


🍔 Employees can use Pazcard at any government-approved food outlets using POS across India

Managing food allowance is effortless

No bills; no manual checks

HRs don’t have to collect bills from employees for food transactions and validate them.

Pazcard integrates with your HRMS

Automate endorsements - employees joining, leaving, and appraised to taxable income.

Download reports from the dashboard

Real-time reports on the utilization of food card by employees for any period.

Benefits for your employees in using Pazcare meal card

Open network across India

Open network across India

It means you can use Pazcard at any food outlet that is government-approved

Full visibility via Pazcare app

Full visibility via Pazcare app

Check credited money and balance in different wallets. Access card details and all transactions made in the app.

Pazcard in employees’ control

Pazcard in employees’ control

Employees can set pin, lock and unlock the card, enable tap to pay, set transaction limit, etc. on the app

30-minute TAT for query resolution

30-minute TAT for query resolution

Employees can raise queries within the app and our team will resolve them in 30 minutes

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ISO 27001 certificate

ISO 27001 certified

When I founded Wint Wealth, I knew our employees deserved the best. So we adopted both Pazcare’s insurance and their innovative Pazcard.

With Pazcard my employees are now able to save taxes on their food and fuel expenses. Whether ordering food online or buying groceries at supermarkets our employees use Pazcard on a daily basis.

Ajinkya Kulkarni
CEO & Co-Founder

Ajinkya Kulkarni

When we wanted to give more employee benefits, Pazcard was the answer to our needs.
Their competitive pricing and diverse benefits - from food, fuel, telecom, to gifts wallets elevated our employee perks. What sealed the deal was their flexible, supportive team. Now we’re offering more and better, without breaking the bank.

Umang Mehta
Sr Operations Manager


Frequently asked questions on meal allowance

Have questions? We are here to help

What is food allowance exemption limit?

The food allowance exemption limit is ₹2200.

How to give food allowance for employees working away?

Pazcard works for all your employees working in any location in India. Since we have an open network, your employees can use Pazcard at any government-approved stores and fuel stations using POS.

Meal allowance exemption is under which section of income tax?

Meal coupon allowance falls under Section 17(2)(viii) of the Income Tax Act of 1961. It states that for food allowance, meal coupons up to ₹50 are tax exempted.

Is meal allowance taxable?

No, meal allowance is not taxable for employees. It is exempted up to ₹2200.