New Delhi, April 13 -- For salaried employees in the new tax regime, the list of meaningful tax-saving components has shrunk. Popular elements such as house rent allowance (HRA) and leave travel allowance (LTA) have lost relevance for those who have shifted to the simplified structure. One component that has gained prominence is car lease provided by the employer.

This significant flexi benefit not only offers employees the convenience of driving a car without owning it and worrying about maintenance, but it can also help save tax.

How car lease works

Car leasing allows employees to use a vehicle for a fixed period by paying a monthly rental fee instead of buying a car outright or taking a loan. Ownership remains with the leasing compa...