I-T deduction on loans taken to buy e-vehicles

Sushant Ranjan
Saturday, 6 July 2019

“We are delighted with certain provisions made in the latest budget, as they underline the government’s commitment to promoting EV adoption in India. The move to allow an additional tax deduction up to Rs 1.5 lakh on loans taken for EV purchase, in particular, will incentivise more Indian consumers to buy EVs,” said Avis India MD & CEO Sunil Gupta.

PUNE: In yet another bid to promote electric vehicles, Finance Minister Nirmala Sitharaman announced in the Union Budget 2019-20 that there will be an Income Tax (I-T) deduction up to Rs 1.5 lakh on loans taken to buy e-vehicles.

“The government has already moved the GST council to lower the GST rate on electric vehicles (EVs) from 12 per cent to 5 per cent. Also, to make EVs affordable for consumers, our government will provide additional Income Tax deduction up to Rs 1.5 lakh on the interest paid on the loans taken to purchase EVs,” announced Sitharaman.

“We are delighted with certain provisions made in the latest budget, as they underline the government’s commitment to promoting EV adoption in India. The move to allow an additional tax deduction up to Rs 1.5 lakh on loans taken for EV purchase, in particular, will incentivise more Indian consumers to buy EVs,” said Avis India MD & CEO Sunil Gupta.

K Jayaprakash Nair, co-convener, CII Pune, Taxation and Finance Panel, Chief Financial Officer, Mahindra CIE Automotive Ltd, said, “The benefits, which will flow to people under various schemes, will mean more money in the hands of consumers and will push demand up. Labour reforms, will help the manufacturing sector. Power sector initiatives such as one nation one grid and encouragement to electric vehicles are in a positive direction.”

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