In order to promote mass adoption of electric cars, governments often offer appealing tax benefits
In this post, we take a look at the details of the kind of tax benefits you can avail of if you are a business owner who wants to purchase an EV. In recent times, we have seen the EV industry grow exponentially not just in India but globally. Governments and policymakers are coming up with enticing offers to promote the mass adoption of EVs. Among other benefits, the registration charges, attractive leasing options and tax credits are some of the top methods to make the ownership experience more affordable.
How Can Business Owners Save Massive Taxes on EVs?
The specifics of this case stem from Pranay Kapoor on YouTube. The host explains the intricacies of how to best utilize the government schemes to reap the benefits of tax savings. In this case, he takes the example of the Mercedes GLA and EQA. The former is a turbo petrol SUV, while the latter is its electric version. He compares the ownership costs of the two SUVs with regular financing and Mercedes’ Star Agility+ Program. The latter is a leasing mechanism, where one gets the option to return the car back to the company after 3 years.
I must admit the host went into all the tiny details of the entire duration of 3 years to include every aspect to compare the tax benefits at the end. This includes the on-road price, down payment, EMI, resale value, depreciation rate, tax saved on depreciation, buyback value, capital gains tax, etc. In the end, it was discovered that if you wish to own an EV, then going for the Star Agility+ Program will offer you higher savings in comparison to owning the car via a loan. On the other hand, if you want an ICE car, then the regular load route makes more sense.
My View
I must mention here that such videos are made for ease of understanding. This doesn’t mean that this is the only way to purchase a car. In fact, you should ideally consult your CA. He/She will advise you as per your situation. In any case, if you wish to learn about such topics, these videos certainly contain enough information to comprehend how things work. This is a great starting point towards financial literacy. I shall bring more such instances for our readers in times to come.
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Also Read: VW Sues Indian Authorities for $1.4 Billion Tax Notice – Report
