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.