I-T rules tweaked to expand safe harbour laws, threshold hiked to ₹300 crore: Here’s how it benefits EV makers | Mint
Source: Live Mint
The Central Board of Direct Taxes (CBDT) notified certain amendments in Income-Tax Rules (I-T), 1962, on Tuesday, March 25, to expand the scope of safe harbour rules. According to the central tax body, I-T laws have been tweaked to provide tax benefits to electric vehicle (EV) and EV battery makers in India.
According to CBDT’s circular, the scope of the safe harbour rules has been expanded by increasing the threshold limit from ₹200 crore to ₹300 crore. The amendments include adding lithium-ion batteries for electric or hybrid EVs in the definition of “core auto components”. The tweaks help EVs on taxes.
The amendments will provide tax certainty to the assesses opting for safe harbour. They apply to two assessment years, 2025-26 and 2026-27.
