India Budget 2019 Incentives on electric vehicles & tax benefits for buyers

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India Budget 2019

India Budget 2019 – For the promotion of electric vehicles in a big way in the country, both direct and indirect tax incentives are announced.  The Finance Minister said –“considering India’s large consumer base, we aim to envision  India as a global hub of manufacturing of Electric Vehicles”. 

Inclusion of Solar storage batteries and charging infrastructure in the above Scheme will boost our efforts, she said. The Finance Minister announced that the “Government has already moved GST Council to lower the GST rate on electric vehicles from 12% to 5%. Also to make electric vehicles affordable to consumers, our Government will provide additional income tax deduction of Rs 1.5 lakh on the interest paid on loans taken to purchase electric vehicles.

This amounts to a benefit of around Rs 2.5 lakh over the loan period to the taxpayers who take loans to purchase an electric vehicle”.   The Minister while proposing an increase in customs duties on automobile and automobile parts had provided for exemption of customs duties on certain parts of electric vehicles.

India Budget 2019: Electric Vehicle Highlight

  • Additional income tax deduction of Rs. 1.5 lakh on interest paid on electric vehicle loans.
  • Customs duty exempted on certain parts of electric vehicles.

MG ZS EV and the Hyundai Kona

Tata Nexon ev Launched in India at a price of ₹ 13.99 Lakh

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