Tax Benefits for Employees on Taking a Car on a Lease |
Posted: February 20, 2018 |
Today’s car buyers are willing to have their new cars on a lease rather than buy them outright. There’re many reasons for this like there is no requirement of down payment, capitalization, resources for maintenance and much more. Most importantly, the leasing option gives the employees an opportunity to cut their tax rates. Find HowMany car lease companies in India allow employers to address key elements of recruiting, retaining and motivation to their employees in today’s competitive human resource market. No Down Payment – A good leasing company is committed to providing its client's full benefits by arranging for 100% Car Funding. Thus, your employees don’t need to worry about the down payment. They don’t need to pay anything from their pocket to take the car on lease. Tax Saving – The lease amount paid every month to the leasing company is tax exempted in the country. So, all eligible employees can save taxed to the extent of the lease rental/EMI paid against the car. Tax Saving On Maintenance – Not only this but the employees can also enjoy the tax saving on each rupee paid by the leasing company for the car maintenance. This is because the maintenance (Tyres and batteries) are part of the per month EMI payable. Value Added Service – Most reputable car leasing companies in India provide options to choose the value-added services. It’s is the privilege of the employees to either select or avoid these services. If anyone picks the service, he or she can save tax on the cost of each value-added service. Tax Savings on Insurance Premium – The car lease service providers do also provide insurance premium protection for a full term. Employees don’t need to make any payment for the insurance of the vehicle. Still, they can save tax on the amount payable against the insurance premium. No Paperwork Required – Employees don’t need to submit any paper for opting for the car on a lease basis. Leasing is hassle free transaction when compared to applying for a car loan. No paper is required from the employee to enroll in the car lease program. Used Cars Enrollment – Some of the best car leasing companies do also allow eligible employees to easily enroll their existing cars in the car leasing scheme. By doing so, the employee can avail the tax benefits subject to terms and conditions. Thus, if you’re a reputable company, wanting to motivate your eligible employees by presenting them a car, you should look for the best car lease company in the country.
|
|||||||||||||||||||||||||||||||||||||||||||||||||
|