Tax Benifits of Electric Vechicle
All about Tax benefits you can claim on your EV purchase
Deduction of Rs. 1,50,000 under S-80EEB of IT Act, 1961 on interest paid on EV Loan.
Low GST rate of only 5% (Earlier it was 12%).
EVs are exempt from road tax and registration costs in some states like Delhi bringing a huge reduction in Cost.
Exempt from Green Tax – Personal vehicles would be CHARGED TAX at the time of RENEWAL of RC after 15 years. Whereas, EV would be EXEMPT from Green Tax entirely.
No fuel, no emissions Low maintenance because a traditional combustion engine contains hundreds of moving parts i.e. more wear and tear whereas an electric motor has fewer than 20.
In order to be eligible to claim the tax benefit under S-80EEB, the following conditions are to be fulfilled:–
- Loan should be taken from a bank or specified NBFC.
- Loan has to be sanctioned between 1st April 2019 and 31st March 2023.
- Max. deduction upto Rs. 1.5 lakh is allowed on Interest.
- Deduction is allowed for Individual taxpayers only.
Note: Only the Interest part of the Loan is to be allowed as a Deduction.