Income Tax Exemption After Old Vehicle Scrap Before Budget 2023 Says Government

The Union Budget 2023 is going to come on February 1. Meanwhile, the government has made a big announcement for the people who have old vehicles. Along with this, a package of Rs 2000 crore has been asked to be given to the states for scrapping old vehicles. This package will be given under Special Assistance for Capital Investing Scheme.

The government had mentioned the Special Assistance Scheme for Capital Investing to the states during the 2022-23 budget. An allocation of Rs 1.05 lakh crore was made under this scheme. Under this scheme, interest-free loans are given to state governments for capital projects for 50 years.

What did the government announce about the scam

Now the central government has given an additional package of 2000 crores under this, so that the states move forward in the direction of scrapping the vehicles. Along with this, if a person scraps his vehicle which is 15 years old, then he will also be exempted from tax. Explain that the Finance Ministry had written in its letter that the road transport sector has been identified for giving incentives, after which this decision has come to the fore.

Rs 41,118 crore released to states

As an incentive to road transport, old vehicles have been added for scrapping and the state has announced a package of 2,000 crores. A package of Rs 1.05 lakh crore was also announced under the scheme presented in the budget for road transport, which has been later increased to Rs 1.07 lakh crore.

So far, the government has sanctioned Rs 77,110 crore under the scheme, out of which Rs 41,118 crore has been released to the states. The objective of the scheme is to encourage states to undertake capital expenditure and Rs 80,000 crore has been earmarked for this. Huh.

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