Hi team, Was wondering how fuel and maintenance perquisite is applied to electric vehicles.
currently anything billable can be reimbursed to the employee as part of fuel allowance and employee can claim tax benifits.
however, how do we go about EV's which are being charged at home.
please advise.
thanks
From India, undefined
currently anything billable can be reimbursed to the employee as part of fuel allowance and employee can claim tax benifits.
however, how do we go about EV's which are being charged at home.
please advise.
thanks
From India, undefined
PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
It is difficult to fix a rate as there is so much variation in the mileage claimed by different OEMs and the newer models are announcing unbelievable figures. As an encouragement to switch to EV vehicles, it is suggested to keep the same rate as applied to diesel & petrol vehicles of the same engine capacity.
From India, Mumbai
1457From India, Mumbai
Hi @KK!HR,
thanks for the reply.
Reimbursement of local conveyance is out of scope of this discussion.
Let me elaborate my question further.
Companies usually have fuel allowance in the salary or part of choice pay/special allowances. If the employee opts for it then the amount opted can be reimbursed to avail tax benefits.
Given the above context:
Petrol/CNG/Diesel will be reimbursed at actuals provided that the employee submit the bills.
EV's charged at stations will also be reimbursed at actuals provided employee submits the bills.
the catch is, EV's can also be charged at home in addition to the charging stations. If the EV is charged at home the bill is usually includes the the entire household.
in this case how will the reimbursement procedure work?
thanks in advance
From India, undefined
thanks for the reply.
Reimbursement of local conveyance is out of scope of this discussion.
Let me elaborate my question further.
Companies usually have fuel allowance in the salary or part of choice pay/special allowances. If the employee opts for it then the amount opted can be reimbursed to avail tax benefits.
Given the above context:
Petrol/CNG/Diesel will be reimbursed at actuals provided that the employee submit the bills.
EV's charged at stations will also be reimbursed at actuals provided employee submits the bills.
the catch is, EV's can also be charged at home in addition to the charging stations. If the EV is charged at home the bill is usually includes the the entire household.
in this case how will the reimbursement procedure work?
thanks in advance
From India, undefined
Hi,
Added to the above you can educate employees about the IT exemption on the interest paid towards a loan taken specifically to purchase an electric vehicle
The 80EEB is a section of the Income Tax Act, specially curated for electric vehicle buyers who avail of vehicle loans to purchase an EV. This section allows an individual taxpayer to claim a deduction of up to ₹1.5 lakh on the interest component of the vehicle loan taken to purchase the EV.
From India, Madras
Added to the above you can educate employees about the IT exemption on the interest paid towards a loan taken specifically to purchase an electric vehicle
The 80EEB is a section of the Income Tax Act, specially curated for electric vehicle buyers who avail of vehicle loans to purchase an EV. This section allows an individual taxpayer to claim a deduction of up to ₹1.5 lakh on the interest component of the vehicle loan taken to purchase the EV.
From India, Madras
Hi Uhcia
You claim that " EV's charged at stations will also be reimbursed at actuals provided employee submits the bills."
So make a Policy and circulate among eligible employees saying that reimbursement for EV will be considered only subject to production of bills. Which means if they want exemption they should charge at stations only and submit bills.
You will not be able to differentiate from a common EB bill how much units used for EV charging. Instead of complicating things further just make a Policy and circulate among eligible employees.
From India, Madras
You claim that " EV's charged at stations will also be reimbursed at actuals provided employee submits the bills."
So make a Policy and circulate among eligible employees saying that reimbursement for EV will be considered only subject to production of bills. Which means if they want exemption they should charge at stations only and submit bills.
You will not be able to differentiate from a common EB bill how much units used for EV charging. Instead of complicating things further just make a Policy and circulate among eligible employees.
From India, Madras
Revision of Vehicle & Fuel Reimbursement Policy Across the Industry.pdf
Napo-maintenanc e-02-hidden-haz ard-eng.zip