Frequently Asked Questions

Under Section 32 of the Income Tax Act, businesses can claim 40% accelerated depreciation on solar energy equipment in the first year of installation. This means if you invest ₹10 lakh in a rooftop solar system, you can deduct ₹4 lakh from your taxable income in Year 1 itself.

For a business in the 30% tax bracket, this translates to an actual tax saving of ₹1.2 lakh in the first year alone. The remaining 60% is depreciated over subsequent years using the Written Down Value (WDV) method at 15% per year.

Try our Solar Depreciation Calculator to see your exact savings.

Only businesses and professionals who file income tax returns showing income under the "Profits and Gains of Business or Profession" head can claim solar depreciation. This includes:

• Companies (Private Ltd, LLP, OPC)
• Partnership firms
• Sole proprietors with business income
• Professionals (doctors, lawyers, architects, CAs) with professional income
• Manufacturing units, factories, warehouses

Not eligible: Salaried individuals (unless they have a separate business), those using presumptive taxation under Section 44AD/44ADA, and residential installations claimed for personal use only.

Electric vehicles attract just 5% GST compared to 28% GST + 1-22% cess (effective 29-50%) for petrol and diesel vehicles. The savings are substantial:

• On a ₹15 lakh car: GST on EV = ₹75,000 vs. ICE = ₹4.2-7.5 lakh. You save ₹3.45-6.75 lakh in GST alone.
• Many states waive road tax entirely for EVs (Delhi, Maharashtra, Gujarat, Karnataka, and others).
• FAME-III subsidies provide additional discounts of ₹15,000-₹1,00,000 depending on vehicle type.
• Section 80EEB allows a ₹1.5 lakh income tax deduction on EV loan interest (for individuals).

Calculate your exact EV savings with our tool.

The Green Tax is an additional fee charged when renewing the registration of older, polluting vehicles. Introduced as part of India's Vehicle Scrappage Policy:

• Private vehicles over 15 years: 10-25% of road tax as Green Tax (increases with age)
• Commercial vehicles over 8 years: 10-50% of road tax as Green Tax
• Pollution hotspot cities (Delhi, Mumbai, etc.): Additional 50% surcharge on Green Tax

The goal is to encourage owners to scrap old, polluting vehicles and switch to newer, cleaner ones. Calculate your vehicle's Green Tax to see if scrapping makes financial sense.

Our calculators provide estimates based on current tax rules (Income Tax Act Section 32, GST rates, Motor Vehicles Act) and publicly available data. They are designed to give you a directional understanding of potential savings.

Actual savings depend on your specific tax bracket, business structure, state of registration, applicable subsidies, and other individual factors. We strongly recommend consulting a qualified Chartered Accountant (CA) or tax advisor for precise financial planning before making investment decisions.

See our full disclaimer for details.

No. GreenTax.in is an educational and informational platform. We do not sell solar panels, electric vehicles, or any other products. Our mission is to help Indian businesses and individuals understand the financial benefits of green energy investments through data-driven calculators and policy guides.

Our "Get Quote" feature connects you with local solar installers and EV dealers in your city, but we are not a party to any transaction between you and the dealer.

GreenTax.in is independently operated and funded through:

• Google AdSense: We display non-intrusive ads from Google's advertising network. Ad revenue supports our research and operations.
• Lead referrals: When you request a quote through our platform, we connect you with relevant service providers. We may receive a referral fee for successful connections.

We do not accept payment from any solar or EV company to influence our calculator results or editorial content. Our information is impartial and based on publicly available tax rules and government data.

Our calculators are a great starting point for understanding potential tax benefits. They help you estimate the ballpark savings before you invest time and money in detailed tax planning.

However, for actual tax filing and investment decisions, you should:

1. Use our calculator to get an initial estimate
2. Share the results with your CA or tax advisor
3. Get a precise computation based on your business's specific financial situation
4. Factor in state-specific subsidies and local regulations

Our tools are educational aids, not replacements for professional tax advice.