[EV Fan]

Originally Posted by StarrySky

"Either we take two tickets, or you drop us in the car. You know which is cheaper."

It definitely is true. For me when driven efficiently and charged at home, it beats the public transport cost(KeralaSRTC + Indian Railways). Have tested it out both for short & long distance. Even for a single person the EV was more cost effective.

The only thing that could have beaten it was my cycle, but the service cost for the cycle was higher than that of the car.

[nidhikapoor]

Originally Posted by sprashanth1982

I think it is going to be a mammoth task, but if our government willingly engages in it, then I predict that in 8-10 years time EV adoption can happen throughout the country.

I think setting up actual chargers will be easier than getting that much power. Will India be able to produce adequate power if the country really switches to all/almost all electric?

[shubhank008]

Has anyone who purchased a EV as a business purchase, yet claimed the 40% depreciation in books ?
I know income tax depreciation chart mentions Electric battery operated vehicle to have 40% rate, but even my CA was unaware of it, so interested to know if anyone claimed it yet.

[Chrome6Boy]

Originally Posted by shubhank008

Has anyone who purchased a EV as a business purchase, yet claimed the 40% depreciation in books ?
I know income tax depreciation chart mentions Electric battery operated vehicle to have 40% rate, but even my CA was unaware of it, so interested to know if anyone claimed it yet.

From my understanding this only applies to proprietorships, not partnerships etc. Please see below

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.

https://cleartax.in/s/section-80eeb-...ectric-vehicle

[shubhank008]

Originally Posted by Chrome6Boy

From my understanding this only applies to proprietorships, not partnerships etc. Please see below

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.

https://cleartax.in/s/section-80eeb-...ectric-vehicle

You are talking about claiming income tax rebate, that was/is different from booking depreciation value in books of companies which reduces profit which reduces tax.
Normally cars have 15% depreciation rate but for EVs, official income tax depreciation chart states 40% in first year itself, which is huge.

[Iyencar]

Originally Posted by shubhank008

Has anyone who purchased a EV as a business purchase, yet claimed the 40% depreciation in books ?
I know income tax depreciation chart mentions Electric battery operated vehicle to have 40% rate, but even my CA was unaware of it, so interested to know if anyone claimed it yet.

Very keen to see if you succeed in this. One of the major draws of getting an EV.

Originally Posted by Chrome6Boy

From my understanding this only applies to proprietorships, not partnerships etc. Please see below
Features of Section 80EEB
Eligibility criteria

This section applies to individuals for income tax depreciation and is anyways not valid since March 2023. Shubhank008 is talking about registering the car in his company’s name and making it part of his co’s assets. He can then claiming depreciation on it which is a common business practice. Very different from the IT deduction you have listed.

[A.K]

Originally Posted by shubhank008

Has anyone who purchased a EV as a business purchase, yet claimed the 40% depreciation in books ?
I know income tax depreciation chart mentions Electric battery operated vehicle to have 40% rate, but even my CA was unaware of it, so interested to know if anyone claimed it yet.

Done it for many of our clients since there has been a flurry of EVs lately, especially scooters and light commercial vehicles. Deduction is available in the 40% block for pure EVs, not hybrids. Please make sure you remind your CA of the same since most forget it and depreciate EVs under the 15% block. Changing the block in the succeeding year is not advisable.

[shubhank008]

Originally Posted by A.K

Done it for many of our clients since there has been a flurry of EVs lately, especially scooters and light commercial vehicles. Deduction is available in the 40% block for pure EVs, not hybrids. Please make sure you remind your CA of the same since most forget it and depreciate EVs under the 15% block. Changing the block in the succeeding year is not advisable.

Yeah, although he was unaware of such a nice benefit and surprised, he was pretty clear too that if its there in IT Depreciation Table, then it is so, usually there are no gimmicks or hidden terms involved so we can absolutely mark 40% depreciation.

I just wanted to know if others did it yet and/or any problems arised later, won't lie, this is too good to be true.

[sharathkamath04]

Advantage: Free driving if your workplace has a charger or you have a solar setup. Never gonna happen with ICE cars

[NOTORIOUS]

Originally Posted by A.K

Done it for many of our clients since there has been a flurry of EVs lately, especially scooters and light commercial vehicles. Deduction is available in the 40% block for pure EVs, not hybrids. Please make sure you remind your CA of the same since most forget it and depreciate EVs under the 15% block. Changing the block in the succeeding year is not advisable.

need some more info on this please , does it mean that on prop. or partnership firms , you can claim 40% dep in first year itself ?

[A.K]

Originally Posted by NOTORIOUS

need some more info on this please , does it mean that on prop. or partnership firms , you can claim 40% dep in first year itself ?

Hi, this benefit is available for EVs being used as business assets. Doesn't matter if it is a sole proprietorship, partnership or a company, one can claim 40% depreciation every year, beginning from the year of purchase, on the EV as long as it in the business books.

[NOTORIOUS]

This is effective in all india or in particular states ? can you help me with applicable section also under which its allowed ? apologies for asking too much but my CA is clueless.

[A.K]

Originally Posted by NOTORIOUS

This is effective in all india or in particular states ? can you help me with applicable section also under which its allowed ? apologies for asking too much but my CA is clueless.

Depreciation is claimed under Section 32 of the Income Tax Act and it is applicable nationwide. Please ask your CA to refer to the depreciation rates chart. Attaching a link to the same from the GoI website, please refer to the heading "(o) Electrically operated vehicles including battery powered or fuel-cell powered vehicles" and the rate against it, which reads 40%.

Link - https://incometaxindia.gov.in/_layou...63.htm&IsDlg=0

@Mods - Please attach a screenshot for easier reference of the depreication rate on EVs from the above link. Unable to do so myself. Thanks.

[shubhank008]

Originally Posted by A.K

Done it for many of our clients since there has been a flurry of EVs lately, especially scooters and light commercial vehicles. Deduction is available in the 40% block for pure EVs, not hybrids. Please make sure you remind your CA of the same since most forget it and depreciate EVs under the 15% block. Changing the block in the succeeding year is not advisable.

Originally Posted by NOTORIOUS

need some more info on this please , does it mean that on prop. or partnership firms , you can claim 40% dep in first year itself ?

Just wanted to update in this post itself, that was successfully able to claim the 40% Depreciation in Income Tax for last year's return.
Well technically, I got 20% depreciation cause car was purchased in November 2023 and year ended March 2024, so the asset owned was less than 6 months and then got 50% value of the 40% depreciation i.e. 20% overall.

Nonetheless, really good as again this year I can claim 40% of the remaining depreciation and in 2 years of ownership, availed almost full value of the car to offset the income tax.

PS: Had purchased MG Comet for 9.3L November 2023, not too sure about the calculations and values in the Computation table as I think the full value of car was considered including insurance ? (Which would be around 10L~)



For more clarity, adding Depreciation table in computation from previous year (2022-2023)