[Omkar]

If you're in the market to buy a new EV and expecting big incentives/subsidies, you might be too late. After speaking to a couple of dealers in Mumbai about the Tiago EV, I was told that the incentives are no longer available. The limit for the number of vehicles crossed just at the beginning of December, so you no longer get any incentives for the purchase of an EV in Maharashtra. Just to understand better what’s available and what’s not, here’s a list of incentives for 4-wheeler passenger electric vehicles –

Central government incentive under FAME-India Scheme Phase II – Still available

Incentive - Rs. 15,000/KWh (Source)
Maximum incentive – 40 % of the cost of the vehicle
Expiry - 31st March 2024 (Source)

Note – Central government incentive is provided to buyers of electric vehicles in the form of an upfront reduction in the purchase price of electric vehicles, i.e. not at the dealer level.

Electric vehicles incentives in Maharashtra – Not available

• Basic incentive – Rs. 5,000 / kWh
Maximum incentive – Rs. 1,50,000
The number of vehicles to be incentivized limit – 10,000

• Early bird incentive - Rs. 5,000 / kWh
Maximum incentive – Rs. 1,00,000
Incentive limit – Vehicles registered before March 31, 2022

Note – For a vehicle to qualify for these incentives, its cost would have to be under Rs. 15 lahks.

What are some other benefits of buying an EV?

• All the EVs sold and registered in the state shall be exempted from motor vehicle tax till the duration of the policy.
• MoRTH issued a notification advising states to waive road tax on EVs, which in turn will help reduce the initial cost of EVs.
• As per the MoRTH notification of 18th June 2019, all the EVs sold and registered in the state shall be exempted from the payment of fees for purpose of issuing or renewing of registration certificate.
• GST on electric vehicles has been reduced from 12% to 5%; GST
• An individual buyer will be able to avail these incentives only once for the respective vehicle category.

Sources - Press Release & Maharashtra Incentives PDF

In Conclusion

• The state government of Goa ended all the subsidies for electric cars on July 31, 2022.
• Given the popularity of EVs, state-wise incentives are being used up quickly.
• The government’s official website isn’t updated instantly - (Related Link).
• The purpose of this thread is to update ourselves with the latest EV incentives in respective states.

[Aditya]

Thread moved out from the Assembly Line. Thanks for sharing!

[coldice4u]

Does anyone know what is the status of the subsidy for EV vehicles in Haryana?
As per the EV policy notification first 1000 vehicles are eligible for the subsidy. Is there any way to find out how many vehicles have been registered so far under the new policy?

[Shreyans_Jain]

The fact that there is no road tax is a huge incentive in itself. Rest, it is up to the industry to ensure that this kind of powertrain is cost competitive enough. As long as the overall lifetime numbers are in the green (pun intended), people will buy.

Ultimately, government has no business promoting EVs. This, whatever little benefits they have offered, this little lip service is basically to burnish their green credentials under the Paris agreement. Everyone knows that private cars contribute a minuscule % to overall emissions. Ultimately, the government is loosing revenue - on road tax, on GST and on the massive amounts they make as taxes on selling fuel.

Whenever they feel this image building exercise has achieved its objectives, they will start withdrawing the incentives.

[Cresterk]

Wish Kerala would offer any kind of incentives for EVs. We don't even get road tax waiver :(

[aamishdhingra]

I strongly believe that until the infrastructure is well built up for the EV's the governments should plan on giving good incentives as it will in turn help the industry to get into the boom phase and people will start considering to buy an EV purely because of the subsidies available today.

[anshumandun]

The interest on loan taken for EVs can be used to reduce your taxable income upto INR 1,50,000 (similar to home loan I guess).

Does this come under central scheme or is this state specific? Till when is this valid? Any insights will be helpful

[SulemanP]

The Government perhaps wanted to reduce dependence on bio fuel and likewise encourage use of alternate fuel/electric vehicles here in India. Keeping this in mind if they are withdrawing the scheme in a phased manner, I feel is quite reasonable as electric vehicles have started to become affordable. By the time they equalize with ICE cars in terms of pricing these incentives might go away altogether from both Central & State governments.

[varunswnt]

Originally Posted by anshumandun

The interest on loan taken for EVs can be used to reduce your taxable income upto INR 1,50,000 (similar to home loan I guess).

Does this come under central scheme or is this state specific? Till when is this valid? Any insights will be helpful

https://cleartax.in/s/section-80eeb-deduction-purchase-EV

Features of Section 80EEB

Eligibility criteria

The deduction under this section is available only to individuals. This deduction is not available to any other taxpayer. Thus, if you are a HUF, AOP, Partnership firm, a company, or any other kind of taxpayer, you cannot claim any benefit under this section.

Amount of deduction

A deduction for interest payments up to Rs 1,50,000 is available under Section 80EEB. An individual taxpayer may have an electric vehicle for personal use or for business use. This deduction would facilitate individuals having an electric vehicle for personal use to claim the interest paid on the vehicle loan.

Do note that an individual taxpayer should obtain the interest paid certificate and keep the necessary documents such as tax invoice and loan documents handy at the time of filing of the return.

Period of Tax Benefit

The deduction under section 80EEB is available for all the years where interest on loan is paid, starting from AY 2020-21.

Conditions for claiming the deduction

• The loan must be taken from a financial institution or a non-banking financial company for buying an electric vehicle.
• The loan must be sanctioned anytime during the period starting from 1 April 2019 till 31 March 2023.

[AdhikR]

Interestingly, the Tamil Nadu government intends to extend its 100% road tax exemption for electric vehicles till 2025. This was set to expire in 2022.

[doctorjee]

We purchased our vehicle in 2020Nov. The virtual RC book mentions that tax is valid upto 2021 Oct. I thought there is no road tax on EVs in Maharashtra?
A friend of mine who owns an EV was asked to pay road tax at the RTO (~Rs600).
It's all very confusing!