Tax Saving: Everyone who pays tax often thinks about those tips and tricks with the help of which they can save maximum tax. Before buying any big thing, a person’s mind is focused on how to save tax on it. For example, when a person buys a car, he has to pay tax worth lakhs. We have an easy solution for this and that is taking a car on lease. Tax worth lakhs can be saved by this.

What is car leasing?
For those who do not know, let us tell them that car leasing in simple language means renting a car. For this you have to pay a fixed rent every month. The car is not in your name, it is in the name of the company from which you have taken the car on lease. But the ownership remains with you as long as you are paying the lease. This is exactly the same as when we live in a rented house.

Car leasing will save tax
There are many benefits of renting a car, one of them is tax saving, let us tell you how you can save lakhs of rupees in tax.

• The company in which you work gives you a car on lease.
• Car lease cost is adjusted into your gross salary. The structure of the package is designed accordingly.
• In cars supplied by the company, tax is calculated on the basis of tax rules such as engine size and utility rather than the actual expenditure.
• This value may be less than the cost of the purchased car.
• Petrol, diesel or gas of the leased car, driver’s expenses, all these are paid by the company itself.
• These expenses not only save you from your personal expenses but are also very economical from tax point of view.

What does the new tax regime say?
The focus of the new tax regime is on reducing the tax prices, so that minimum exemption can be given. As a result, in tax planning, emphasis is being placed on structuring compensation within the rules rather than on claim deduction.

Everyone dreams of having their own car, but many people are not able to buy a car due to budget. There are some people who are fond of changing vehicles frequently. For such people, car companies are now giving a new option of taking a car on lease. These days, this facility is fast becoming the choice of people in India. People are now increasingly taking cars on lease instead of buying them. In such a situation, let us tell you today what is the car lease scheme and whether it is more beneficial to take a car on lease or a new car.

What is this facility of car lease?

Actually, under this scheme, car companies give cars on lease to customers for a fixed period of time. In return the customer has to pay an amount every month. This amount is decided according to the time limit and model of the vehicle. In this you do not have to make any down payment, but some amount has to be deposited as security money. In this, the company sets a limit for you to drive the car, on crossing which you have to pay extra charge. The special thing is that the company bears the expenses of maintenance, service and insurance of the vehicle. This means that the customer gets relief from hassles.

What are the advantages and disadvantages?

Many big car companies in India like Hyundai, Mercedes, Mahindra & Mahindra, Fiat and Skoda are providing this facility. The biggest advantage of this scheme is that the customer does not have to bear down payment, road tax and maintenance expenses. However, its biggest disadvantage is that despite paying money every month for a long time, the customer does not become the owner of the car and after the completion of the stipulated period, the car has to be returned to the company. However, this scheme can be beneficial for those people who like to change vehicles frequently or whose job is transferable. Such people can experience new vehicles without purchasing. Under the car lease scheme, customers can take the vehicle on lease for 12 months to 40 months. After completion of time, the plan can be extended or another vehicle can be taken on lease.

Is it better to buy or lease a car?

If you are going to stay and drive in the same city for a long time, then buying a car will be more beneficial. However, if you are in a city for only two to three years then it would be better to take a car on lease. It can be understood in this way that if you buy a car worth Rs 50 lakh, then you will have to pay EMI of about Rs 1.19 lakh every month, in which the total expenditure in 3 years reaches about Rs 60 lakh. Whereas if you take that car on lease, you will have to pay a rent of Rs 1.3 lakh every month and the expenditure in 3 years will be around Rs 37 lakh. After taking the car on lease, you will have to return the car to the company after the completion of the period.

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