A method and system for tracking usage of applications in handheld devices is disclosed. The method includes scanning for pre-connected devices present in a vehicle at the moment when the vehicle is in an ignition mode. Further, the method includes establishing connectivity with the pre-connected devices. Furthermore, the method includes recording usage data of the vehicle and usage data of the handheld device with a start time and end time. Moreover, the method includes uploading the recorded usage data in a cloud. The method also includes permitting one or more users to view the recorded usage data.