- LATEST
- WEBSTORY
- TRENDING
AUTOMOBILE
EV tax benefits in India: Everything you need to know before buying an electric vehicle in 2022
Unlike pertrol and diesel vehicles for private use, EV owners can profit from the recently added clause called Section 80EEB.
Updated : Jan 02, 2022, 05:33 PM IST | Edited by : Chitresh Sehgal & Aayushi
 "EV tax benefits in India: Everything you need to know before buying an electric vehicle in 2022")
TRENDING NOW
)
Meet Amit Kataria, IIT graduate who cleared UPSC with AIR 18, took just Rs 1 as salary, is still India's richest IAS officer, is married to...
)
Meet man, who scored 44% in class 10th, 65% in class 12th, failed 10 times, later cracked UPSC exam with AIR..., he is now...
)
Rinku Singh gets this special gift from fiancee Priya Saroj, it is worth Rs...
)
Israel Iran News: Cars Crushed & Homes Shattered In Iran's Attack On Ramat Gan | Iran Israel War
)
Billionaire Nikhil Kamath says THIS thing to be most valuable in next 5-10 years, not gold, silver, land or money, it is...
)
Meet Radhika Subramaniam, India's first bilingual AI influencer who speaks ..., is always on...
)
Meet Leanna Mallya, daughter of Vijay Mallya, lesser-known sister of Sidharth Mallya and Tanya Mallya, she is currently working as..., her net worth is Rs...
)
Made in Rs 15 crore, this film had 17-year-old actress in lead, had limited release, still earned Rs 900 crore, is highest-grossing Indian film with...
)
Kedarnath Helicopter Crash: 7 dead as chopper carrying pilgrims crashes near Gaurikund
)
Meet Nicole Daniella O'Connor, beautiful wife of South African cricketer, Aiden Markram, who owns Jewellery brand, works with charity
)
Meet Mahatma Gandhi's great-granddaughter jailed for 7 years in Rs 3.22 crore fraud case in..., she faked...
)
Housefull 5 box office collection day 9: Akshay Kumar-starrer races to Rs 150 crore in India, jumps on 2nd Saturday, earns...
)
Anirudh Ravichander breaks silence on his marriage rumours with Kavya Maran, asks fans to...
)
Net worth of Rs 78000 crores, still no one knows his name, works closely with Mukesh Ambani, Isha Ambani, owns Rs 250000 crore brand, he is..
)
The 11A mystery: Survivor from deadly 1998 crash had same seat number as Air India tragedy's lone survivor, is it the safest seat?
An increasing number of people are opting for electric vehicles (EV) over petrol or diesel vehicles. This option is not only better for the environment, but is also more efficient as compared to traditional fuel-powered vehicles. Moreover, rising petrol and other fuel prices have triggered an increase in the number of customers who want to shift to electric vehicles. In India, electric vehicles are not only cost-effective, but they also have financial benefits.
Car for personal use is classified a status symbol/ luxury item under India's Income Tax rules, so employed professionals do not receive extra tax advantages on automobile loans. EV owners, on the other hand, can profit from the recently added clause called Section 80EEB.
Individuals who purchase EV on loan will be eligible for a tax reduction of Rs 1.5 lakh on the interest charged on the mortgage balance under this provision. There are plenty of electric vehicle models on the market, and with increased sales, some automakers are planning to introduce new models.
This tax exemption is available for both cars and 2-wheeler EV purchases. The section 80EEB is subject to some conditions.
Each person is only eligible for this tax benefit once. This indicates that only those who have never acquired an electric vehicle previously are eligible for a tax relief under section 80EEB on a loan. Only those who are financing an electric vehicle are eligible for this concession.
A loan from a financial institution or a non-banking financial company must be used to finance the EV (NBFC). The deduction is not available to businesses. Individuals are the only ones who will be able to take advantage of the tax cut.
Payoffs of any loans for EV purchase accepted between April 1, 2019 and March 31, 2023 are eligible for tax savings under the section. From fiscal year 2020-2021 onwards, tax incentives under section 80EEB are available.
An Electric vehicle purchase would not only save you money on income taxes, but it will also save you money on GST, since the government has reduced the amount from 12 percent to 5%.
