Planning to buy electric car? What Budget 2023 can offer as income tax benefits – EQ Mag
With more than 13 lakh electric vehicles on the roads in India as of July 2022, the electric vehicle sector has been witnessing tremendous growth over the last few years. It would no longer be an exaggeration to say that the future of the automotive industry lies in electric vehicles.
In May 2021, the Indian government launched the Production Linked Incentive (PLI) scheme for manufacturing batteries to bring down prices of this core key component of electric vehicles. In September 2021, electric vehicles were covered under the PLI scheme for automobile and auto components with a significant budgetary outlay for 5 years.
The Goods and Services Tax (GST) on sale of electric vehicles has been reduced from 12% to 5%. The Ministry of Road Transport & Highways has advised state governments to waive road tax on purchase of electric vehicles. For example, Maharashtra has granted subsidy on road tax on electric cars up to Rs 1.5 lakh. Additionally, individuals are allowed an additional deduction of Rs 1.5 lakh for interest payable on loan taken to purchase electric vehicles. All these initiatives have made the acqui…Read More...
