If you are one of those people who look for provisions to get tax benefits and discounts before buying a car, this video would be of immense value.
Here is how you could reduce the ownership costs of a brand new vehicle. These days, people are getting more and more aware of the provisions to reduce the effective costs of vehicles. This could be in the form of tax benefits, depreciation costs, discounts under various sections of the Income Tax, etc. The famous YouTuber lists out all the formalities associated with this in-depth.
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How Reduce Ownership Costs of Vehicles?
First and foremost, the people who are transferring their old car to a new owner or getting it exchanged at the dealership itself, could claim the NCB (No Claim Bonus) from the insurance company if the claim has not been claimed. This could easily be claimed by getting the certificate from the insurance company. Secondly, one could claim the benefit as a result of depreciation under the tax laws. However, you must use the car for business to claim this. This ranges up to 15% at the end of the financial year when you file your taxes. This is something that a lot of people are not aware of.
Thirdly, there is quite some money to be saved in the case of loan interest rates. If you are buying a car for business usage, the interest rates are different. You must have noticed that there are so many advantages of buying vehicles for business. Then, there are government incentives for the purchase of EVs (electric cars) until March 31, 2023. You are eligible to claim tax benefits up to Rs 1.50 lakh if you buy an EV on loan. This is one of many schemes that the government is running to promote the mass adoption of EVs in India.
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Finally, if you are from the state of Kerala, Maharashtra, Telangana, and Karnataka where the road taxes are too high, it would save a lot of money by applying for the BH (Bharat) registration plate. It is applicable for central government employees, public sector employees and certain private-sector employees as well. Apart from this, there are tax reductions in GST for defense personnel or certain people with disabilities provided they are able to drive a car. Make sure to avail of these discounts to reduce the ownership of new cars.