Tax Tips: Mobile phones, laptops can save your tax, this is the way..

Every year when it is time to file income tax returns, we all think about how to save tax. The good thing is that if you buy certain items like mobile phones, and laptops and use them for your work or business, then you can get tax exemption on these. Let's understand in simple language how a mobile, laptop can help you save tax.

However, the new tax regime still allows employers to reimburse the cost of mobile phones, and laptop leases. If they are used for official purposes. Some companies allow you to buy these things after 12 months of use.

How does it work?
The phone or laptop is given as a tripartite agreement between the employer, employee, and the leasing company. The company buys the phone and rents it to the employer. The employer allows the employee to use it (for official or work purposes). According to Mint's report, according to Vardhan Koshal, founder of asset leasing company Tortoise, the employer can also sell the phone or laptop at a discount after 1 or 2 years.

To give you an example, if you have bought a new mobile for Rs 30,000 and a laptop for Rs 50,000 and you use them for your work, then you can deduct a total of Rs 80,000 from your taxable income. The device leasing process was started by the leasing company when its corporate client, ABC Limited, came up with a device leasing program for its employees.

The laptop can save your tax.

For example, if an employee earns Rs 1 lakh every month and rents a device for Rs 10,000 per month, then his tax will be calculated as Rs 90,000 instead of Rs 1 lakh. There can be tax savings in this. For someone in the 30% tax bracket, the savings would be Rs 3,000 per month or Rs 36,000 annually. The purchase must be billed in your name or the name of your business. The items must be used mostly for professional purposes rather than personal use.

If a device costs Rs 1.1 lakh and the employee pays Rs 10,000 every month over 12 months (totaling Rs 1.2 lakh), they save Rs 36,000 through tax benefits. If they choose to buy the device at the end of the lease for Rs 6,000, their total cost comes down to Rs 90,000 – yet there is a benefit of Rs 20,000 on a lump sum purchase.

Disclaimer: This content has been sourced and edited from TV9. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.