Electric Vehicles (EVs) are like the cool kids on the automotive block – no gross gases, no pollution, and a glimpse into the future of cars. Plus, with fuel prices playing tag with the sky, electric vehicles (EVs) are becoming the stars of the show. But here’s the real scoop: besides being pocket-friendly, EVs also bring some awesome tax benefits into the game.
In the 2019 Budget, the finance minister introduced a new superhero move called section 80EEB. This section lets you catch a break on the interest you pay for your electric vehicle loan starting from 2020-21.
Now, why did they do this? Well, it’s all about keeping our world green and clean. The government wants more people to hop on eco-friendly transportation, and these tax benefits are like the golden ticket to make it happen. Ready to dive into the world of tax perks for your electric ride?
What Exactly Does ‘Electric Vehicle’ Mean?
An electric vehicle is basically a cool ride that runs on a special battery and an electric motor. And get this, when you hit the brakes, it’s not just stopping your car, it’s turning that brake power into electricity. How cool is that?
Now, here’s the scoop on tax benefits. If you’re taking a loan to get your electric wheels, you can snag some tax goodies under section 80EEB. But wait, there are rules:
- The loan should only be for buying your electric ride.
- Tax benefits are all about the interest on that electric vehicle loan.
- Go get your loan from a registered bank or a non-banking financial hotshot.
- If you’re a family, a company, or some other fancy taxpayer, these tax perks aren’t for you.
Exploring the Benefits of Electric Vehicles
So, you know about the tax benefits of going electric, but there’s more in the treasure trove of perks:
- GST Rates: The government slashed the GST on electric vehicles from 12% to a cool 5%. Saving money?
- Green Tax: Ever heard of green tax? Well, you won’t pay for your electric ride when renewing your registration after 15 years. Double win!
- Budget-Friendly Maintenance: Say goodbye to hefty maintenance bills. Electric vehicles keep it easy on the pocket compared to the regular petrol or diesel options.
- No PUC Hassle: Forget about the Pollution Under Control (PUC) certificate stress. Electric vehicles don’t need it because they’re clean and green.
- Insure and Drive: Insurance? Got it covered! You can grab insurance that protects against all sorts of damages, and it’s the law to have at least third-party coverage for your electric beauty.
Are Electric Vehicles Required to Have Car Insurance?
Electric cars are all the rage in India, bringing eco-friendly vibes and saving you some serious cash on fuel. But, hold on – these high-tech rides can also mean higher repair bills. That’s where electric vehicle insurance swoops in to save the day. Here’s why you need it:
- It’s the Law: No escaping this one, the law says all cars on Indian roads must have insurance. Don’t want to deal with hefty fines from traffic police? Get that insurance!
- Shield Against Third-Party Troubles: Accidents happen. With third-party insurance, you’re covered for the costs if your electric beauty accidentally messes with someone else’s stuff.
- Safe from Repair Bills: EV insurance isn’t just a legal thing; it’s your financial superhero. If your electric ride needs repairs, your insurance can foot the bill.
- Personal Protection: What if something happens to you? Electric vehicle insurance doesn’t just cover your car, it looks out for you too. If there’s an accident that causes harm or worse, your family gets financial support.
1. Why is insurance for EV cars so expensive?
Electric cars, which are super fancy and have cool features, usually cost more money compared to regular cars that run on gasoline or diesel. Because of this, the insurance you pay for these electric cars is also higher. The insurance cost depends a lot on how much the car is worth, and since electric cars are worth a lot, you end up paying more to insure them.
2. Are electric cars less expensive to insure?
Making electric cars involves using special batteries called lithium-ion batteries, and these batteries make the cars more expensive to build. Because the cars cost more, the amount of money you declare when getting insurance for these electric cars also goes up. This makes the insurance cost more compared to cars that use gasoline or diesel.
3. Is insurance mandatory for an electric vehicle?
In India, the law says that every vehicle, no matter if it runs on petrol, diesel, natural gas, or electricity, must have insurance. It’s a rule! If you don’t follow this rule, you could end up having to pay a lot of money and dealing with legal problems. But here’s the thing: the basic insurance, called a third-party policy, only pays for the damage you might do to other people or their stuff. It doesn’t cover anything that happens to your own car or you. So, it’s like a safety rule for everyone on the road!
4. How can one find the right insurance company for an electric vehicle?
When you’re getting insurance for your electric car, there are some important things to think about. Look at what people say about how the insurance company helps out when you have a problem with your car. Check if they have a good reputation overall. These are the things you want to consider when you’re picking the right insurance for your electric ride.