Tax Benefits of Buying an Electric Vehicle

With the arrival of better technology and further giant auto players in the maturity of our vehicles, we are turning to electric. Factors like the ease of navigating, Government support, technology, and mindfulness about climate change have redounded in numerous switching to completely electric vehicles. This has also upsurged in auto insurance price plans, renewal of two-wheeler insurance and programs.

Why are Electric Vehicles Getting More Popular?

 People these days are more apprehensive of the growing pitfalls of environmental change and are taking neat ways to reduce climate change. But unfortunately, vehicular pollution has been a high factor in global warming, so the popularity of electric vehicles is on the shaft. Listed below are some of the reasons why electric vehicles are gaining such popularity:

  • Enhanced performance: Slow and underpowered, the new makers have forayed into better technology and improved manufacturing processes. As a result, these electric vehicles can travel hundreds of long hauls off one charge, and the performance rate of these vehicles is significantly better.
  • Government support: Government support has surfaced in obliging auto manufacturers that a specific chance of their deals will have to be for electric vehicles. Purchasing electric vehicles also comes with significant tax benefits.
  • Advanced technology: Electric automobiles have futuristic capabilities with advanced features like touch-screen interfaces and smart-road assistance and likewise. With similar features, electric vehicles have a bright future on our roads.
  • Lower costs: Known for low handling costs, electric vehicles are getting more accessible to the general public by reducing the cost price of the auto. But while embracing the change, basic knowledge of electric vehicle ownership is vital. For example, how much does it cost to insure an electric car? Also, how much does it cost to renew two wheeler insurance policy compared to a regular vehicle? By understanding how to certify or renew a two-wheeler insurance electric vehicle best, you can save money and ensure proper coverage for your new or two-wheeler car.
  • Fuel efficiency: Electric vehicles or two-wheelers are more effective than traditional gasoline-powered vehicles. Likewise, rising petrol and other energy prices have contributed to numerous desires to switch to electric cars.
  • GST duty benefits: EVs aren’t only practical; they also have duty advantages in India. Purchasing an electric vehicle with a loan can make you eligible for income duty benefits under the 80EEB. The duty benefits of GST have been cut to five per cent from the former.
  • Available customized insurance: There are various insurance policies available too. Renewal of two-wheeler insurance and four-wheeler has been easy too.
  • Tax benefits: Personal cars are considered luxury products under Indian laws. Therefore, salaried professionals are unable to receive any tax benefits on car loans. Conversely, Electronic Vehicle customers can aim for tax benefits on their loans under a freshly added section 80EEB. To promote electric vehicles, India’s government has added a section to relieve the taxes.

How to Save Tax on Electronic Car Vehicles?

There is no shortage of EV models in the Indian market, and with rising sales, several automakers are set to launch new models in the coming year.

What is Section 80EEB?

With several automakers riding, there is no shortage of upcoming models of electric vehicles. Any person salaried or a business is eligible for tax deductions under the above-stated section. In addition, it allows a deduction of Rs 1.5 lakh on interest paid on the loan amount. This tax benefit comes as a cheery on the cake for salaried customers and also any other potential electric vehicle buyers. This tax exemption is available for four-wheelers and can also be implied to two-wheelers.

Conditions applied:

  • This impunity can be profited by any person only one time. This means only an existent who has no way possessed an EV ahead can mileage duty relief on loan under Section 80EEB.
  • This impunity is only for people buying an EV on loan. The loan financing the EV should be from either fiscal institutions or NBFCs.
  • The impunity isn’t for businesses. Individuals can only profit from the duty relief.
  • Duty relief under the section can profit for nets of all EV loans taken from April 1, 2019, to March 31, 2023.
  • Duty benefits under Section 80EEB can profit from the fiscal year 2020- 2021 onwards.

Not just the Income duty benefit, an EV purchase will also bring you a duty benefit on GST, with the government having cut the rate to 5 from the earlier 12.

Indeed though the cost of buying and assuring an electric auto is relatively advanced, numerous pluses are attached to copping an electric vehicle. Critical features like relief from energy price hikes, quieter machines, reduced pollution situations, and significant policies like tax deductions have made a mark in the machine assiduity. As a result, people are now apprehensive about investing in electric vehicles.

With the growth in electric auto requests, electric vehicle manufacturers are investing considerable quantities in enriching their structure and force chain. Hence, the cost of insurance and the taxation for electric vehicles will decline soon. As a result, nearly all top machine brands in India have started offering electric cars.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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