In the revised income tax regime, many conventional exemptions such as meal cards and allowances have been discontinued, leaving salaried employees looking for new ways to save on taxes. However, one lesser-known benefit is making a quiet yet significant impact: leasing of mobile phones and laptops.

This innovative tax-saving strategy is rapidly gaining popularity among companies and employees, especially those under the new tax regime, where traditional deductions are limited. Let’s explore how this system works, how much one can save, and why it’s becoming a scalable and smart tax-planning tool.

Unlike the old tax structure, the new regime does not allow most exemptions and deductions. But reimbursements for work-related mobile and laptop usage remain non-taxable — if they are used for professional purposes. This has opened the door for companies to provide devices on lease, helping employees legally reduce their taxable income.

Here’s the key: instead of purchasing the devices outright, companies lease them to employees via third-party leasing firms. These lease payments are deducted from the employee’s gross salary on a pre-tax basis, thereby lowering the taxable income.

This is typically a three-way arrangement involving:

For the employee, the lease amount is deducted before tax, thus reducing their overall tax liability.

Let’s understand with an example:

• Monthly salary: ₹1,00,000

• Lease amount for device: ₹10,000/month

• Tax slab: 30%

• Taxable income = ₹1,00,000

• Monthly tax = ₹30,000

• Taxable income = ₹90,000

• Monthly tax = ₹27,000

• Tax saved: ₹3,000/month or ₹36,000 annually

Additionally, after the lease period (usually 12 months), companies may allow employees to buy the device at a discounted rate — often ₹6,000 or less for a device that originally costs ₹1.10 lakh. Factoring in tax savings and discounted purchase, the net effective cost of the device becomes ₹90,000, resulting in an overall benefit of ₹20,000.

This model offers more flexibility and affordability than traditional benefits like car leases. Here's why:

• GST Input Tax Credit (ITC): Companies can claim ITC on laptops and mobiles used for business — which is not allowed for cars.

• Pass-on Benefit: ITC savings can be transferred to employees indirectly, making the lease more cost-efficient.

• Scalability: Since mobile and laptop leases involve smaller amounts than cars, even junior or mid-level employees can avail of them — making it workforce-wide scalable.

The new tax regime, introduced to simplify tax filing, removed many itemized deductions like standard deduction, HRA, LTA, and others. While that made things more straightforward, it also removed several savings options.

In such a landscape, mobile and laptop leasing emerges as a practical workaround, enabling both financial savings and access to the latest technology without upfront investment. Employees benefit from reduced tax bills, and employers enjoy higher employee satisfaction and potential ITC claims.

In an era where digital work tools are essential, leveraging them for smart tax planning is a win-win. If you're employed under the new tax regime and your employer offers a device leasing facility — it might just be the hidden gem in your financial planning strategy.

Don’t ignore this opportunity. Talk to your HR or finance team to see if such a scheme exists in your company. If not, maybe it’s time to suggest implementing it — your tax savings and tech upgrade could both be just a lease away.