In order to make the country electric vehicle friendly, the new Union Budget provides the following benefits:
● Tax rebates of up to Rs1.5 lakh on interest paid on loans to buy electric vehicles.
● In addition to this, a total exemption of Rs 2.5 lakh will be given over the entire loan period.
● Customs duty exemption on lithium-ion cells which will reduce the cost of lithium-ion batteries in India.
● Those who manufacture solar electric charging infrastructure and lithium storage batteries can avail investment linked income tax exemptions under Section 35 AD of the Income Tax Act.