As electric vehicles (EVs) continue to gain popularity in India, the Nexon EV stands out as one of the most successful and accessible options for Indian car buyers. Beyond its advanced technology and performance, one major reason behind its popularity is the wide range of Nexon EV tax benefits offered by the government to encourage the adoption of electric mobility.

Whether you’re a salaried individual, business owner, or company executive, buying a Nexon EV not only reduces your carbon footprint but also provides significant tax savings and incentives. In this detailed guide, we’ll explore all the Nexon EV tax benefits, state-wise subsidies, Section 80EEB benefits, road tax exemptions, and more—so you can make an informed and financially smart decision.

Why Tax Benefits Matter When Buying an EV

One of the main reasons people hesitate to adopt EVs is their initial cost. While running costs of electric vehicles are significantly lower, the upfront price is still higher than traditional petrol or diesel cars. That’s where Nexon EV tax benefits make a major difference. These incentives effectively reduce the cost of ownership and enhance the value proposition for buyers.

The Government of India and various state governments offer several tax exemptions and financial incentives to make EVs more affordable, and the Nexon EV—being the top-selling electric SUV in the country—qualifies for most of them.

1. Income Tax Deduction Under Section 80EEB

One of the most talked-about Nexon EV tax benefits is the deduction available under Section 80EEB of the Income Tax Act.

What is Section 80EEB?

Section 80EEB allows individuals to claim a deduction of up to ₹1.5 lakh on the interest paid on loans taken to purchase an electric vehicle. This deduction is available only to individuals (not companies or partnerships) and only for loans sanctioned between 1st April 2019 and 31st March 2023 (or extended by notification).

Who Can Claim This?

If you’re a salaried or self-employed individual who bought the Nexon EV using a loan, you can claim this deduction—provided the loan was taken from a financial institution or NBFC.

Example:

If your loan interest on the Nexon EV is ₹1.9 lakh per year, you can deduct up to ₹1.5 lakh from your total taxable income, effectively saving around ₹45,000 per year in taxes (assuming a 30% tax bracket).

This is a major Nexon EV tax benefit that buyers should not ignore.

2. GST Reduction from 12% to 5%

Another critical Nexon EV tax benefit comes in the form of GST (Goods and Services Tax). While most internal combustion engine (ICE) vehicles attract 28% GST plus cess, electric vehicles enjoy a much lower rate of 5% GST.

This leads to a significant reduction in the on-road price of the Nexon EV. This reduction is already included in the car’s showroom price, making it more affordable.

For example, a ₹16 lakh petrol SUV would typically have a higher effective price due to GST and cess, whereas the Nexon EV benefits from the reduced rate, saving lakhs upfront.

3. No Road Tax in Many States

In a move to promote EV adoption, many Indian states have waived road tax for electric vehicles entirely. This is another major Nexon EV tax benefit, as road tax usually ranges between 6% to 10% of the vehicle’s ex-showroom price.

States Offering 100% Road Tax Exemption:

• Delhi
• Maharashtra
• Telangana
• Tamil Nadu
• Karnataka
• Gujarat
• Rajasthan
• Punjab
• Kerala

In these states, when you buy the Nexon EV, you don’t need to pay any road tax, resulting in direct savings of ₹80,000 to ₹1.5 lakh depending on the model variant and location.

4. State Subsidies and Incentives

Apart from central government tax reliefs, various states offer additional subsidies and incentives for EV buyers.

Here’s a look at how Nexon EV tax benefits vary by state:

Delhi:

• Road tax and registration fee: Fully waived
• State subsidy: ₹10,000 per kWh (up to ₹1.5 lakh)

Maharashtra:

• Road tax: Exempted
• Registration: Free
• Subsidy: Up to ₹2.5 lakh including early bird incentives (for first few lakh buyers)

Gujarat:

• Road tax: Waived
• Subsidy: ₹10,000 per kWh (max ₹1.5 lakh)
• Effective Nexon EV price drops by over ₹2 lakh

Telangana:

• 100% road tax and registration fee exemption
  
• Additional commercial incentives for fleet purchases

These subsidies further reduce the total cost of owning a Nexon EV and significantly enhance the total Nexon EV tax benefits.

5. Registration Fee Exemption

Another benefit in the list of Nexon EV tax benefits is the waiver of registration charges in many states. Normally, registration fees can be around ₹10,000–₹20,000 depending on the vehicle category.

As per central government directions in 2021, registration fees for battery-operated vehicles were waived, and many states have implemented this waiver. This helps in lowering the overall on-road cost.

6. Business Benefits: Depreciation & EV for Corporate Fleets

If you’re a business owner or run a fleet service, you can claim accelerated depreciation on the Nexon EV.

Under Income Tax rules:

• EVs used for business purposes can claim 40% depreciation in the first year
  
• Subsequent years can claim 15% per annum
  

This helps in reducing your taxable business income significantly and adds to the total Nexon EV tax benefits from a corporate perspective.

Also, companies adopting EVs can showcase their ESG (Environmental, Social, and Governance) compliance and reduce fuel expenses.

7. Green Zone and Toll Fee Exemptions

Some states and municipal authorities have introduced low-emission or green zones, where only EVs are allowed without toll or congestion charges. In cities like Delhi and Mumbai, this trend is expanding fast.

Owning a Nexon EV allows you to drive in these zones without paying any additional congestion fee or toll, adding to the long-term Nexon EV tax benefits.

8. Reduced Maintenance and Ownership Costs

While not a direct tax benefit, the lower maintenance cost of the Nexon EV translates into financial savings year after year.

• No oil changes
  
• Fewer moving parts
  
• Regenerative braking reduces brake wear
  

This cumulative saving can go up to ₹50,000–₹75,000 over 5 years—adding up to the financial advantages of the Nexon EV tax benefits package.

9. Additional Local Authority Incentives

Certain cities and urban local bodies (ULBs) have started offering parking discounts, EV fast charging incentives, and special parking spots for electric vehicles like the Nexon EV.

For instance:

• Hyderabad offers dedicated EV parking zones.
  
• Bangalore provides subsidized home charger installation for EV buyers.
  
• Mumbai grants preferential EV parking in public garages.
  

All these add soft savings and reinforce the practicality of Nexon EV tax benefits in daily life.

10. Future-Proof Investment

Finally, buying an electric vehicle like the Nexon EV is not just about today’s tax savings—it’s about future-proofing your mobility.

• As fossil fuel prices rise, EVs offer immunity from unpredictable fuel inflation.
  
• Resale value of EVs is improving rapidly with growing demand.
  
• Government continues to roll out more EV-friendly policies and tax incentives.
  

So, investing in the Nexon EV today means locking in long-term Nexon EV tax benefits and running cost advantages for the next 5–8 years.

Final Thoughts: Is the Nexon EV Worth It from a Tax Saving Perspective?

Absolutely. When you combine all the available Nexon EV tax benefits—from Section 80EEB to GST discounts, state subsidies, road tax exemptions, and business depreciation—it becomes clear that the Nexon EV offers unmatched value.

You’re not just getting a modern, zero-emission SUV—you’re also:

• Saving lakhs in taxes and fees
  
• Contributing to a cleaner environment
  
• Preparing yourself for India’s electric mobility future
  

FAQs on Nexon EV Tax Benefits

Q1. Can I claim tax benefits if I buy the Nexon EV in cash (without a loan)?
No, Section 80EEB is only available if you finance the Nexon EV through a loan.

Q2. Can businesses claim 80EEB on Nexon EV purchase?
No, Section 80EEB is only for individual taxpayers. However, businesses can claim depreciation on the car.

Q3. Are Nexon EV tax benefits available in all states?
Yes, most are. But the extent of state-level benefits varies by location. Always check your state EV policy before buying.

Q4. Do these benefits apply to used Nexon EVs?
Section 80EEB and most state subsidies apply only to new EV purchases, not pre-owned cars.

Conclusion

If you’re planning to switch to electric mobility, the Tata Nexon EV is one of the most financially sensible options today. With a combination of national and state-level incentives, Nexon EV tax benefits can reduce your ownership cost by ₹3–5 lakh or more over the vehicle’s lifetime.

So, whether you’re an eco-conscious individual, a savvy investor, or a cost-cutting business, these Nexon EV tax benefits offer more than just savings—they deliver peace of mind, sustainability, and long-term value.