NDA govt to offer income tax exemption for EV buyers

To promote the purchase of electric vehicles the National Democratic Alliance government will offer exemption of income tax worth ₹1.5 lakh for buying electric vehicles. Focus will also be given to manufacturing of lithium ion batteries in India. Customs duty for import of certain parts of electric vehicles have also been reduced to promote electric mobility.

The proposal was tabled by finance minister Nirmala Sitharaman during her budget speech.

According to the minister, the income tax exemption will account for a save of ₹2.5 lakh for a customer during the entire period of purchase.