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 from ₹200 crore to ₹300 crore. The amendments also include involving lithium-ion batteries for use in electric or hybrid EVs in the definition of core auto components.
