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Employee smartphone leasing, also known as SmartEPP (Smart Employee Purchase Program), has emerged as one of the most innovative employee benefit solutions in India. This model allows employees of a company to access premium smartphones and enjoy significant tax benefits, without employers bearing any financial liability.
According to insights from legal expert Aditya Iyer at Vinod Kothari & Company, CTC device leasing represents a fascinating evolution of the traditional CTC car-leasing model, adapted for the digital age. In his comprehensive analysis published in May 2025, Iyer highlights how this model leverages Rule 3(7)(ix) of the Income Tax Rules to create a win-win scenario where employees can save up to 40% on premium devices while employers face zero additional costs. What makes this particularly interesting is the delicate balance lessors must maintain with residual values to keep them high enough to avoid NBFC registration requirements, yet low enough to preserve meaningful tax benefits for employees.
The employee device leasing market in India is still nascent but growing rapidly. This emerging sector is gaining traction due to associated tax benefits, short tenures, and mass-market potential.
Let's explore the verified providers revolutionizing how Indian companies equip their workforce with technology.
1. Swish Club ↗️
Why Swish Club Leads the Pack:
Swish Club has established itself as the gold standard in employee smartphone leasing, offering an unmatched combination of savings, flexibility, and ease of implementation that sets it apart from every competitor in the market. A detailed comparison can be found here.
Unique Advantages:
- Maximum Savings: Employees save up to 40% compared to online marketplaces—delivering the highest value in the industry
- Unbeatable Discount: Employees report getting devices at 37% less than the lowest online price
- Zero Employer Liability: Complete peace of mind with no financial or asset responsibility—if an employee leaves, the company has zero risk
- AI-Powered Asset Management: Free intelligent asset tracking and management system
- Widest Integration Network: Seamlessly integrates with 25+ HRMS, ERP, and payroll systems—more than any competitor
- Premium Device Selection: Access to 10+ leading brands including Apple, Samsung, OnePlus, and more
- No Upfront Costs: Employees get latest smartphones without any initial payment
- Flexible Ownership: Option to own the device at the end of the lease period
- Comprehensive Insurance: Full coverage included at no extra cost
- 24/7 Support: Round-the-clock customer service on WhatsApp, email, and phone
- Tax Optimization: Structured to maximize tax benefits under current Income Tax Rules
What Makes Swish Club Different:
While other providers offer basic leasing services, Swish Club delivers a complete ecosystem. Swish Club's AI-powered asset management platform eliminates the administrative burden entirely, it's integration capabilities ensure smooth payroll deductions across any HR system, and their pricing model guarantees the best value proposition for employees. The company's focus on compliance and tax optimization means both employers and employees can leverage the program with complete confidence.
Real employee feedback highlights the flexibility and value: "I love the flexibility of the Employee Smartphone Leasing program. I can choose the device that best suits my needs and return it when I am ready for an upgrade. The insurance coverage gives me peace of mind, and the 24/7 support is always there if I need help."
Best For: Companies of all sizes seeking the most comprehensive, hassle-free, and employee-friendly smartphone leasing solution with maximum savings and zero employer risk.
2. Zaggle ↗️
Zaggle has made significant moves in the SmartEPP space through strategic partnerships, most notably with Google and Redington India for the Smart Employee Purchase (EPP+) Program announced in February 2025.
Key Features:
- Partnership with Google for exclusive access to Pixel devices
- Employees in highest tax brackets can save up to 35%
- Single-vendor solution for device procurement and lifecycle management
- Established player in the employee benefits and expense management space
- Strong corporate presence and brand recognition
- Part of Zaggle's comprehensive employee benefits ecosystem
Strategic Partnership:The collaboration with Google through Redington India represents a significant endorsement and provides employees with access to Google's latest Pixel smartphones through a tax-efficient leasing structure.
Considerations:
- Savings potential (up to 35%) lower than top competitors offering 37-40% savings
- Focus primarily on Google Pixel devices may limit choice for employees preferring other brands
- Better suited for enterprises already using Zaggle's ecosystem for other benefits
- More complex platform may require longer implementation time
Best For: Large enterprises with existing Zaggle relationships or those specifically interested in Google Pixel devices as part of a comprehensive employee benefits strategy.
3. Jio Financial Services ↗️
Jio Financial Services has entered the device leasing segment through its Device as a Service (DaaS) offering, backed by the extensive Reliance ecosystem and India's largest telecom network.
Key Features:
- Leverage of India's largest telecom infrastructure
- Hassle-free IT administration
- Device upgrades and maintenance services
- Potential bundling opportunities with Jio connectivity services
- Strong logistics and service network through parent company Reliance
- National reach and brand trust
Ecosystem Advantage:Being part of the Reliance ecosystem provides Jio Financial Services with unique advantages in terms of supply chain, logistics, and potential integration with Jio's telecom and digital services.
Considerations:
- Relatively new entrant in the employee leasing space compared to specialized providers
- May have bundling requirements or preferences for Jio connectivity services
- Limited public information on specific pricing structures and savings percentages
- Focus may be split between multiple financial service offerings
Best For: Companies with existing Jio telecom relationships or those seeking integrated telecom and device solutions from a single large provider.
4. Astrafin ↗️
Astrafin operates in the employee device leasing space with a focus on providing flexible smartphone and laptop leasing solutions tailored to corporate benefit programs.
Key Features:
- Offers both smartphone and laptop leasing options
- Focuses on flexibility in device selection across brands
- Caters specifically to corporate employee benefit programs
- Emphasis on tax-efficient structuring compliant with Income Tax Rules
- Customizable lease terms based on company requirements
Considerations:
- Smaller market presence compared to top players like Swish Club and Tortoise
- Limited public information on specific partnerships, savings percentages, and service network
- May require more due diligence on service capabilities and coverage
- Less comprehensive integration ecosystem than market leaders
Best For: Large companies seeking straightforward device leasing with flexible terms without extensive platform features or multi-benefit complexity.
5. Everphone (International Player) ↗️
Everphone brings international expertise in smartphone leasing to various markets, with a focus on comprehensive device lifecycle management. While primarily focused on European markets, they represent the international standard in device-as-a-service.
Key Features:
- Global experience in device-as-a-service models
- Strong focus on device lifecycle management
- Comprehensive insurance and replacement services
- Emphasis on sustainability through device reuse and circular economy principles
- Professional device management platform
- Experience managing large-scale corporate deployments
International Perspective: Everphone's experience in mature European markets brings best practices in device management, but their model is primarily designed for international tax and employment structures.
Considerations:
- Limited verified presence in Indian market specifically
- International pricing models may not be optimized for Indian tax benefits under CTC structures
- May lack deep understanding of Indian Income Tax Rules nuances (Rule 3(7)(ix), ITC on GST, etc.)
- Service network and partnerships in India still developing
- May not offer the localized support and integration with Indian HRMS/payroll systems
Best For: Multinational companies seeking consistent global device management policies across multiple countries, where Indian operations are part of a broader international strategy.
6. Tortoise ↗️
Founded by Vardhan Koshal, Tortoise positions itself as a comprehensive employee benefits platform with device leasing as a core offering. The company emphasizes a "consumer-grade benefits experience" for employees and has been prominently featured in industry analyses of the device leasing space.
Key Features:
- Device leasing with zero cost to employers
- Claims up to 40% savings for employees
- Typically structured with 1-2 year lease periods, with devices sold to employees at a discount afterward
- Seamless HRMS and payroll integrations
- Includes Tortoise Corporate Care with broken glass repairs and accidental damage coverage
- On-site pickup and repair services across 27,000 pincodes
- Offers over 100 devices from various brands
- 24/7 toll-free service access
- Two free broken glass repairs per year
- Replacement device provided when under repair
- Comprehensive theft protection included
Process & Implementation: Tortoise handles the entire integration process with existing Payroll and HRMS systems with no manual setup or IT effort required from HR teams. The company provides custom implementation designed around each organization's compliance standards, including drafting device policies and setting up smooth deduction workflows.
Considerations:
- Part of a broader benefits platform, which may add complexity for companies only seeking device leasing
- Focus on consumer-grade experience means more features but potentially higher operational overhead
How to Choose the Right SmartEPP Provider
When selecting an employee smartphone leasing provider, consider these critical factors:
1. Cost Savings
The primary appeal is employee savings. Look for providers offering 35-40% savings compared to retail prices. Swish Club leads here with verified 37-40% savings.
2. Employer Liability
Ensure zero liability structure where the employer isn't responsible for device damage, loss, or employee defaults. All providers listed offer this, but verify the specifics.
3. Integration Capabilities
Seamless HRMS and payroll integration is crucial for smooth implementation and ongoing administration. Swish Club offers the most extensive integration network with 25+ systems.
4. Device Selection
A wide range of brands and models ensures employees can choose devices that meet their needs. Check whether providers offer multiple brands or are limited to specific partnerships.
5. Tax Compliance
The provider should structure leases to maximize tax benefits under current Income Tax Rules while maintaining full compliance. All legitimate providers follow Rule 3(7)(ix) guidelines.
6. Insurance Coverage
Comprehensive insurance should be included to protect against accidental damage, theft, and loss. Verify what's covered and any claim processes.
7. Service Network
Pan-India service and repair networks ensure employees can get support wherever they're located. This is particularly important for companies with distributed workforces.
8. Asset Management
Modern AI-powered tools for tracking devices, managing renewals, and handling employee transitions add significant value and reduce HR administrative burden.
9. Employee Experience
Consider the end-user experience—is the platform intuitive? Is support readily available? Can employees easily upgrade or return devices?
The Tax Advantage: Understanding CTC Device Leasing
As highlighted in the insightful analysis by Aditya Iyer, Manager (Legal) at Vinod Kothari & Company's Financial Services division, CTC device leasing offers compelling tax benefits that make it significantly more advantageous than traditional EMI schemes.
Key Tax Principles:
Under Rule 3(7)(ix) of the Income Tax Rules, read with Section 17 of the Income Tax Act, expenses on mobile phones incurred by the employer on behalf of employees are not treated as taxable perquisites. This creates substantial savings for employees.
How It Works:
When an employer arranges a smartphone lease worth ₹12,000 per month for an employee with a CTC of ₹1,00,000:
- Employee's taxable salary becomes ₹88,000 (instead of ₹1,00,000)
- The lease payment is deducted from CTC before tax calculation
- Employee saves significant tax on the ₹12,000 monthly component
- At year end, employee can purchase the device at residual value
The Employer Cost-Agnostic Model:
Critically, employers remain "cost-agnostic" in this model. Whether the benefit is given to the employee by deducting the amount from their CTC component beforehand, or by paying that component to the employee, the financial obligation and expense for the employer remains unchanged.
Additional GST Benefit:
Unlike CTC car leasing where GST is blocked credit under Section 17(5) of the CGST Act, device leasing allows employers to claim Input Tax Credit (ITC) on GST paid to lessors. This means only the actual lease rental (net of GST) is deducted from employee salary, creating additional savings compared to car leasing models.
The Residual Value Balance:
Aditya Iyer's analysis highlights an important consideration: unless the lessor is a financial sector entity, they typically avoid very low residual values (10% or below) to prevent the lease from being classified as a "financial lease" under accounting norms, which could trigger NBFC registration requirements.
However, higher residual values can reduce employee tax benefits since the purchase option is exercised post-lease by the employee directly, and such payment against residual value may not qualify for Income Tax Rule exemptions. This creates a delicate balance lessors must maintain for business viability while ensuring tax law compliance.
Implementation Best Practices
For Employers:
- Policy Framework: Establish clear device eligibility policies aligned with your organization's structure and budget
- Communication: Clearly explain tax benefits and program mechanics to employees with illustrative examples
- Integration Planning: Ensure smooth integration with existing payroll systems before launch—work with providers offering extensive integration support
- Compliance Review: Have your legal/tax team review the structure for compliance with Income Tax Rules and GST regulations
- Data Protection: Establish protocols for data wiping when devices change hands, considering applicable data protection laws
For Employees:
- Calculate Total Benefits: Consider both tax savings (based on your tax bracket) and device cost reduction
- Commitment Period: Ensure you can commit to the lease tenure (typically 12-24 months) at your current employer
- Device Selection: Choose devices that meet your needs for the lease period—consider the "trend-cycle" if you prefer frequent upgrades
- Residual Value: Understand the buyout price if you wish to own the device post-lease
- Insurance Terms: Review coverage for accidental damage and theft, and understand the claim process
The Trend-Cycle Consideration
Device leasing tenures must account for "trend-cycles." The younger workforce, in particular, may prefer upgrading devices as newer models are released (e.g., new iPhone models typically launch within a year). If lease tenure exceeds this timespan, the facility may lose some of its appeal.
This consideration makes the 12-month lease structures offered by providers like Swish Club and Tortoise particularly attractive, as they align with annual device refresh cycles while still providing meaningful tax benefits.
Market Landscape and Growth Potential
The employee smartphone leasing market in India remains nascent but shows significant promise. As Aditya Iyer observes:
"Because this model is in its nascent stage, it may be too soon to predict what its impact would be on leasing volumes in India. However... the growth of leasing volumes in India has been very low. The use of leasing appears to be kept afloat by models such as CTC car leasing, and now maybe through device leasing."
Key Growth Drivers:
- Democratization of Benefits: Unlike CTC car leasing (typically reserved for senior employees due to high commitments), device leasing makes tax benefits accessible to a broader employee base
- Lower Barriers: Shorter tenures and lower financial commitments make device leasing viable for employees across salary ranges
- Mass-Market Potential: Every employee needs a smartphone, creating much larger addressable market than cars
- Lower Capital Requirements for Lessors: As Iyer notes, lessors can "enter the leasing space without making significant capital expenditures / taking on large borrowings, and to some extent may even be able to lease by obtaining the assets through their own funds rather than borrowings, and use the churn (due to the short tenure) to keep the leasing going"
- Digital-First Workforce: Growing expectation for modern, technology-enabled employee benefits
Future of SmartEPP in India
The employee smartphone leasing market in India is poised for growth, driven by:
- Increasing smartphone penetration and preference for premium devices among working professionals
- Tax benefits becoming more widely understood through employee education and media coverage
- Remote work trends requiring better personal technology for productivity
- Shorter device upgrade cycles (12-24 months) aligning perfectly with lease tenures
- Digital-first workforce expectations for modern, flexible benefits
- Startup ecosystem seeking innovative, low-cost employee retention tools
As more companies discover this benefit and more employees experience the savings firsthand, we can expect rapid adoption, particularly among tech-forward companies and startups looking to compete for talent without traditional high-cost perks.
Conclusion
The employee smartphone leasing market in India is in its early stages but offers compelling benefits for both employers and employees. Among the verified providers operating in this space, Swish Club stands out as the clear leader, offering:
- Maximum verified savings (37-40%)
- Zero employer liability with no risk if employees leave
- AI-powered asset management reducing administrative burden
- Industry-leading integrations with 25+ HRMS/payroll systems
- Comprehensive insurance and support
For companies serious about providing meaningful employee benefits while maintaining operational simplicity and zero financial risk, Swish Club's SmartEPP solution delivers unmatched value.
Disclaimer: Information about providers is based on publicly available sources and may be subject to change. Companies should conduct their own due diligence and request current information directly from providers before making decisions.
