Employer can buy gift coupons from sodexo by making payments for the gift pass amount. These sodexo Passes can be given to employees who can buy different apparels and other products from any of the authorized sodexo shops in exchange of these coupons.
After collecting gift coupons, retailers are required to reimburse it from Sodexo Company on submission of gift passes. These are accepted in retail outlets of more than 400 cities. You can search for your nearest outlets here.
These Sodexo passes can be handed over to family members who can buy anything as per their wish. You need to be very careful while using, as any person in possession of these vouchers will be considered as owner of the passes.
If you have lost it somewhere, then you cannot get it replaced or sodexo will not compensate for it. However damaged or expired cards can be replaced on request through employer.
Income tax benefits on Sodexo gift passes
As per income tax act 1961, any gift by employer to employee in excess of Rs 5 000 during the financial year will be taxable.
This means, employer can gift up to Rs 5 000 to employee in a financial year for which employee need not pay any income tax.
Sodexo gift passes are valued based on these income tax provisions. This means employer is not required to deduct TDS on sodexo gift coupons and employee is also not liable to pay any tax on the value of sodexo gift coupons.
An employee receiving sodexo gift coupons as a gift valuing up to Rs 5000 during the financial year will not be taxable.
Similarly, we have another provision in income tax act, where lunch and refreshments for official purpose will not be taxable in the hands of employee if it’s paid by the employer during office hours. Based on these provisions some employers are giving sodexo coupons as food coupons to save tax for their employees. These food coupons should be used only for foods at office hours to get income tax benefits.