Please explain what is car lease and how we can avail this in which regime (old or new )
A lease is a legal agreement that allows you to fund your purchases like land, building, car, etc. for a fixed period of time in return for rent. This is facilitated through leasing companies which are generally banks or financial institutions.
For salaried employees, car leasing works as a vehicle ownership model where the employee selects a car, and the employer deducts the monthly lease rental directly from their salary.
To avail this, you need to check with your employer if they offer a car lease policy. The annual lease amount will be a part of your CTC, and these payments can be claimed as special allowances, helping reduce your taxable salary.
Please note that these tax benefits are only available under the old tax regime, and make sure to check the car lease terms with your employer, as they may vary.
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