Rent to own – are these valid in India?

[Satishknight414]

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Satishknight414
PARTICIPANT
April 28, 2025 at 8:16 am

Rent to own is a concept where a company pays certain money as ‘rent’ and after a specified time period, the product is considered as a company’s asset.

My question is, if i run an edtech/coaching institute, buying laptop is considered as a business asset and not a expense (very stupid, if you ask me.). Renting laptops that we need might cost us around 3k-5k per laptop per month. In a year, this is around 1 lakh per laptop, which could almost be the price of the laptop.

Now, if I were to get into an agreement with a company telling that ” My firm will rent your stuff for these many years and after a specified time period, this product (laptop or anything) becomes ours.”

Would this be legal in India?

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[Luckynitya9391]

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Luckynitya9391
PARTICIPANT
April 28, 2025 at 11:24 am

You get depreciation benefits on all the assets, you anyways save the IT. What’s the issue here? 🤔

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[Satishknight414]

S

Satishknight414
OP
April 28, 2025 at 5:10 pm

Initial expense is considered as ‘buying asset’s therefore not tax deductible, that is the problem here.

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[Luckynitya9391]

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Luckynitya9391
PARTICIPANT
April 29, 2025 at 4:15 am

Nope. Every expense/asset gives you tax benefits. Consult Good CA.

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