Meal & Fuel Cards: Save Big on Income Tax with New Rules & Benefits

• Draft Income Tax Rules, 2026, propose increasing tax-free meal voucher limit from Rs 50 to Rs 200 per meal.
• 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.
• Meal card exemption currently applies only to employees opting for the old tax regime.
• Fuel cards and corporate expense cards offer tax-efficient alternatives to cash reimbursements, reducing administrative complexity for companies.
• While beneficial, card-based systems face challenges in Tier 2/3 cities and for gig workers due to limited acceptance.