- If you might be shopping for an electric car, then the authorities offers you the profit.
- Total tax exemption as much as Rs 1,50,000 on buy of electric car
- Only particular person taxpayers can avail this exemption
India is quickly transferring in the direction of the digital car revolution. Whether contemplating the inflation of petrol or to be economical whereas defending air pollution, individuals are more and more shopping for electric autos in India. Various state governments have additionally introduced large reductions on the buy of electric autos on their behalf. Registration and insurance coverage is free in virtually all states.
But do you know that by driving an electric car, you aren’t solely saving cash spent on petrol, however you might be additionally getting an opportunity to get tax exemption. However, as a private use car is taken into account a luxurious product below Indian tax legal guidelines, salaried professionals don’t get any tax exemption on auto loans. But in case you are shopping for an electric car, then the authorities offers you the profit.
what’s the profit
To encourage the use of electric autos in India, the authorities created a brand new part that exempts electric car homeowners from paying tax. Under the Income Tax Act, tax exemption is accessible below part 80EEB whereas paying the mortgage for electric car. You can avail whole tax exemption of as much as Rs 1,50,000 by buying an electric car.
Buy a car or a scooter, everybody will get the profit
No distinction has been made in the class of autos to avail this exemption in the Income Tax Act. Whether you purchase a scooter or an electric SUV, you’re going to get a tax good thing about Rs 150000 lakh in any case. Those who select to purchase an EV on mortgage shall be eligible for a tax deduction of Rs 1.5 lakh on the curiosity paid on the mortgage quantity below part 80EEB.
Who can take benefit?
Only particular person taxpayers can avail this exemption. No different taxpayer is eligible for this deduction. That is, HUF, AOP, Partnership agency, firm or every other kind of taxpayer can not benefit from this exemption.
Only first time clients get low cost
You have to notice that this low cost is accessible solely as soon as for every particular person. That is, in case you are a taxpayer and also you already personal an electric scooter or car earlier than this monetary 12 months, then you definately can not benefit from this. Only new clients are eligible for part 80EEB mortgage tax deduction.
No low cost on money buy
You should do not forget that the good thing about exemption is accessible on curiosity on installments paid. In such a state of affairs, in case you are financing an electric car, then solely you’ll profit. Keep in thoughts that the EV mortgage ought to be financed from a monetary establishment or a Non-Banking Finance Company (NBFC).