In recent years, electric vehicles (EVs) have gained significant attention in India due to rising fuel prices, growing environmental concerns, and government incentives. However, purchasing an EV isn’t just about the vehicle itself; the associated costs, including tax rebates and registration charges, play a crucial role in determining the final price of the car.

In this blog post, we’ll dive into the tax rebates and registration charges for EVs in India, giving you a comprehensive understanding of the financial incentives available for EV buyers. This guide will provide you with real numbers, figures, and even a comparison of EVs from various manufacturers.

1. Tax Rebate on EVs in India: A Detailed Overview

The Indian government has recognized the importance of transitioning to sustainable transportation and has introduced several measures to make EVs more affordable. One of the primary incentives is the Income Tax Rebate, available under section 80EEB.

Section 80EEB: Income Tax Rebate for EV Buyers

Introduced in 2019, Section 80EEB offers an income tax rebate of up to ₹1.5 lakh on the interest paid for an EV loan. This rebate is available to individuals buying an electric vehicle for personal use. The key points are:

• Eligibility: Available to individuals, Hindu Undivided Families (HUFs), and non-corporate taxpayers.
• Loan Amount: The rebate applies to interest paid on loans taken for purchasing EVs, with a loan tenure of up to 5 years.
• Rebate Amount: The maximum tax benefit is ₹1.5 lakh.
• Eligible Vehicles: The rebate applies to any electric vehicle purchased after April 1, 2019. The car can be a two-wheeler, four-wheeler, or even an electric bus.

This benefit translates to savings on your annual income tax, making the EV purchase more financially feasible. Given the increasing popularity of EVs in India, this rebate has been a game-changer for many buyers.

2. Registration Charges for EVs in India: State-wise Breakdown

When purchasing an EV in India, you’ll also need to consider the registration charges. Registration fees can vary across states due to different policies, road tax rates, and other considerations. Let’s look at a general breakdown of the registration charges for electric vehicles in India.

General Registration Fees for EVs

The registration fees for electric vehicles in India are significantly lower compared to internal combustion engine (ICE) vehicles. Here's an average overview:

• Registration Fee for Two-Wheelers: ₹100 to ₹1,000 (depending on the state)
• Registration Fee for Four-Wheelers: ₹500 to ₹2,000 (depending on the state)

State-wise Registration Charges for EVs

Below is an indicative list of registration charges in a few major Indian states:

• Delhi: Delhi offers complete exemption on road tax for electric vehicles, meaning that EV buyers don’t have to pay registration fees for electric two-wheelers and cars.
• Maharashtra: Maharashtra has introduced a subsidy scheme where EV buyers pay a nominal fee of ₹1,000 to ₹2,000 for registration. The state also offers an additional subsidy to buyers of EVs.
• Tamil Nadu: Tamil Nadu charges a nominal registration fee of ₹2,000 for electric vehicles, along with an exemption from road tax.
• Karnataka: Karnataka offers a 50% exemption on road tax and registration charges for EVs, making it a more affordable option for buyers.
• Uttar Pradesh: Uttar Pradesh offers tax exemptions for electric vehicles and charges a minimal registration fee of ₹1,000 to ₹1,500.

While each state has its own set of rules, EV owners can expect significant savings on registration fees when compared to traditional gasoline-powered vehicles.

3. Government Subsidies and Benefits for EV Buyers

In addition to tax rebates and reduced registration fees, the government of India has introduced multiple subsidy schemes to make EVs more affordable. These include:

FAME II Scheme (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles)

The FAME II scheme was launched by the Indian government to promote the adoption of electric vehicles. Under this scheme, EV buyers are eligible for subsidies based on the category and model of the vehicle:

• Subsidy for Two-Wheelers: Up to ₹20,000 per vehicle
• Subsidy for Four-Wheelers: Up to ₹1.5 lakh per vehicle
• Subsidy for Buses: Up to ₹55 lakh per bus

Additionally, FAME II focuses on charging infrastructure development, ensuring that buyers of EVs also have access to reliable charging stations.

4. Competitor Analysis: Which EV Offers the Best Tax Rebate and Registration Deals?

In 2025, many car manufacturers are offering electric vehicles in India, each with its own pricing, benefits, and incentives. Let’s take a look at some of the top EVs and how they compare in terms of tax rebates and registration charges.

Tata Nexon EV

• Price Range: ₹14.99 lakh to ₹17.50 lakh
• Tax Rebate: Eligible for a ₹1.5 lakh interest rebate under Section 80EEB
• Registration Charges: Exempt from road tax in most states
• Subsidy: Eligible for subsidies under the FAME II scheme

MG ZS EV

• Price Range: ₹22.00 lakh to ₹25.00 lakh
• Tax Rebate: Eligible for a ₹1.5 lakh interest rebate under Section 80EEB
• Registration Charges: ₹2,000-₹3,000 depending on the state
• Subsidy: Subsidies available under FAME II

Mahindra e2o Plus

• Price Range: ₹7.50 lakh to ₹9.00 lakh
• Tax Rebate: Eligible for a ₹1.5 lakh interest rebate under Section 80EEB
• Registration Charges: ₹500-₹1,000 depending on the state
• Subsidy: Eligible for subsidies under FAME II

5. Other Benefits for EV Owners

In addition to tax rebates and registration fee exemptions, electric vehicle owners in India can enjoy several other benefits, including:

• Exemption from Vehicle Pollution Testing: EVs do not require regular pollution testing, unlike traditional vehicles.
• Discounted Charging Rates: Several states have introduced reduced electricity tariffs for EV owners, making it cheaper to charge the vehicle at home or at public charging stations.
• State-Specific Incentives: Certain states, like Delhi, Maharashtra, and Gujarat, offer additional financial benefits, such as cash rebates, exemptions from road tax, and even free parking in public areas.

6. The Future of EV Tax Rebates and Registration Charges in India

The Indian government is expected to continue offering incentives to support the growing adoption of electric vehicles. With the focus on clean energy, the implementation of further rebates, tax cuts, and registration fee exemptions is likely.

Additionally, states such as Uttar Pradesh, Rajasthan, and Andhra Pradesh have announced plans to further reduce road tax and registration charges for electric vehicles in the coming years.

As the EV market matures, these incentives will only get better, making EVs even more attractive to buyers.

Conclusion: Is It the Right Time to Buy an EV?

With tax rebates, lower registration charges, and a host of other financial benefits, purchasing an electric vehicle in India has never been more affordable. Government initiatives, along with competitive pricing from manufacturers, have made EVs a viable option for environmentally-conscious buyers looking to reduce their carbon footprint.

If you’re considering buying an EV, now is the perfect time to take advantage of the tax rebates and registration charge exemptions available in 2025.