Electric vehicles (EVs) are becoming increasingly popular in India as people look for ways to reduce their carbon footprint and save money on fuel costs. To encourage the adoption of EVs, the government has introduced various tax credits and incentives. In this blog, we will discuss some of the EV tax credits and incentives available in India and what you need to know to take advantage of them.
- FAME II Scheme: The Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme is a government initiative aimed at promoting the adoption of EVs in India. Under the FAME II scheme, the government offers subsidies on the purchase of electric cars and two-wheelers. These subsidies can range from Rs. 10,000 to Rs. 1.5 lakh, depending on the type and model of the vehicle.
- Lower GST Rates: In an effort to promote the adoption of EVs, the government has reduced the Goods and Services Tax (GST) rates on EVs from 12% to 5%. This reduction in GST rates has made electric cars more affordable for consumers and has helped to boost their adoption.
- Income Tax Benefits: In addition to the subsidies and lower GST rates, the government also offers income tax benefits to those who purchase electric cars. Individuals who purchase electric cars are eligible for a tax deduction of up to Rs. 1.5 lakh under section 80EEB of the Income Tax Act.
- State-Specific Incentives: Many states in India also offer their own incentives for the purchase of EVs. For example, the Delhi government offers a one-time subsidy of up to Rs. 30,000 for the purchase of electric two-wheelers, while the Maharashtra government offers a subsidy of up to Rs. 5,000 on the installation of a home charging station.
- Charging Infrastructure Incentives: To promote the development of EV charging infrastructure, the government also offers incentives for setting up EV charging stations. Under the FAME II scheme, the government offers a subsidy of up to Rs. 6,000 per charging point for the installation of charging stations in public places.
In conclusion, there are various tax credits and incentives available for those who are interested in purchasing electric vehicles in India. These incentives make electric cars more affordable for consumers and help to promote the adoption of EVs in the country. If you’re considering purchasing an electric car or setting up an EV charging station, be sure to do your research and take advantage of the available incentives to save money and reduce your carbon footprint.