Abhishek Gautam
March 18,2024
Electric Vehicle tax benefit bill is introduced in India, making EVs tax-efficient. Let's understand the income tax benefits on electric vehicles in India:
Electric Vehicle buyers in India to get an exemption of ₹1.5 lakhs on the interest component of the loan taken to purchase an EV.
Only individual taxpayers can avail of the benefits, not businesses. The business owner must register the vehicle under their name to avail of the benefit.
This income tax exemption for electric vehicles can be availed once a year, only by first-time EV buyers
To make EVs more affordable, the government has reduced the GST on electric vehicles from 12% to 5%
EV owners in India are exempted from paying green tax up to 15 years from the date of purchase.
EV owners can save further on the PUC certificate, as EVs don't require a PUC certificate like petrol or diesel vehicles