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Key Rules for EV Business Write-Offs in India Higher Depreciation: Standard petrol and diesel vehicles typically qualify for a 15% depreciation rate, whereas electrically operated vehicles (including battery-powered or fuel-cell vehicles) qualify for a higher 40% depreciation rate. [1] Registration Requirement: The EV must be registered under the official name of the business or company, not an individual’s personal name. [1, 2] Business Use: The vehicle must be used for commercial or business operations. (Note that mixed or subjective personal use can sometimes face scrutiny during assessments). [1] Tax Savings Mechanism: The write-off is a deduction against taxable profits (lowering your net tax liability) rather than a direct 40% reduction or cash rebate on the purchase price. [1, 2] Loan Interest Deductions: If the business finances the EV through a commercial loan, the interest paid can also be claimed as a business expense, though Section 80EEB personal EV loan interest deductions apply strictly to individual taxpayers rather than corporate entities. [1, 2]
