How will the 2023 budget be helpful for you to buy an EV?

By July 2022, there has been well over 13 lakh electric cars on Indian roads. This is a phenomenal increase in just a couple of years. To suggest that EVs are the automobile sector's fate is no longer an understatement.

The Indian government introduced the Production Linked Incentive plan for battery production in May 2021 to lower the cost of the essential part of electric cars. Electric mobility was included in the PLI program for automobiles and equipment in September 2021, with a significant financial commitment for the next five years.

Electric car

While these initiatives are commendable, additional incentives like this would encourage people to adopt electric cars. Following are some significant initiatives projected from the Union Budget 2023:

Until March 2025, interest on loans used to buy electric vehicles will still be deductible

Currently, a statutory exemption of Rs 1.5 lakh per year is available for loan interest approved for the adoption of EVs up to March 31, 2023. This reduction is valid until the consumer finishes the loan used to purchase the electric car. Consumers may anticipate a two-year renewal of this tax advantage, which will apply to loans approved up to March 31, 2025. Please be aware that certain electric vehicles are eligible for this reduction; hybrid electric vehicles are not.

The establishment of a one-time income tax break for the purchase of an Electric Vehicle

The government must take into account a one-time tax break when calculating tax liability for owners of newer electric vehicles during the year of the sale itself to give the electric vehicle movement some momentum.

Including electric cars under the scope of the necessary regulations

According to current income-tax legislation, a perk worth in possession of an individual that has been given a motor vehicle to be used by the company partially for government and partially for subjective reasons is regarded as chargeable. The recommended requirement amount falls into two groups; it is somewhat greater if the car's engine size is more significant than 1,600cc. More businesses will be able to purchase and distribute these electric vehicles for workforce usage as a result of this interpretation without worrying about denying their workers of the tax concessions perquisite value or risking legal action for using the wrong perquisite value for taking away tax objectives.

GST charges for Electric vehicle conversion kits are being reduced

A sizable group of current combustible fuel-powered engine vehicle consumers might not be ready to switch to electric automobiles. Electric vehicle conversion kits are extremely important to make switching to EVs affordable. If the GST rate were reduced to 5% in connection with the price of electric vehicles, this would greatly assist this section of vehicle holders looking to jump on the e-mobility bandwagon. Presently, GST records a sensible part of the cost when buying an EV conversion kit, which is 18%.

Additionally, the justification for the electric mobility sector has solidified after the unprecedented high spike in fuel prices. We must observe if the government can persuade more people to embrace electric vehicles, as the Central Budget is just around the door.

So, if you plan to buy an electric vehicle, this year would be perfect. India is already accounting for a massive rate of reliance on EVs for the past couple of years; make sure you are not left behind. To ensure your knowledge of Electric vehicles and if you are planning to buy one, you should surely

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