Limit Company Lease For Free

That is why every employee of ours receives a mobility allowance. How you spend this mobility allowance is up to you. You can opt for a leased car, a kilometer allowance for using your own car or an NS Business Card. Or you could opt to have the amount paid out gross.

For the purpose of providing an ease in commutation facility Wipro offers its employees a benefit in form of Car Lease option. Car lease option is available only for 2/3/4/5 years. The EMI limit under this scheme cannot exceed 75% of your WBP.

Company Leased Car (CLC)

Limitations of Lease Finance There are chances that a lease arrangement might impose certain restrictions on the use of assets. For example, it may not allow the lessee to make any alteration or modification in the asset. The lessee never becomes the owner of the asset. It denies him of the residual value of the asset.

Leasing a car can help you save up to 30% of your vehicle-related expenses from getting taxed. The employee using the car must show that they have been regularly using the vehicle for company-related purposes. They can enjoy tax benefits on the lease amount, fuel costs reimbursement, and the driver's salary.

Car leasing allows an individual to use a vehicle for a specified duration by paying rentals regularly. The lease period ranges from three to five years depending on the employer company's rules. The rental amount for the lease is similar to an EMI for a car loan. Only, this is not a vehicle loan.

By leasing, the employee is saving about ?1.57 lakh in taxes every year. Note that some employers provide reimbursement for fuel as well as driver's salary and claiming them would increase your tax savings by ay an additional 10-15%.