#Tax Benefit from Electric Vehicle
To promote and encourage the use of electric vehicles, Government has introduced a tax benefit to individuals purchasing electric vehicles.
Thus, a buyer of Electric Vehicle will get benefit by claiming deduction under section 80EEB of Income Tax Act.
#Who can claim deduction?
Deduction under section 80EEB can be claimed only by an individual taxpayer.
#When can a deduction under section 80EEB be claimed?
An individual taxpayer can claim a deduction under section 80EEB for interest paid on loan taken from any financial institution, to purchase electric vehicle .
Such loan taken to purchase any electric vehicle should have been sanctioned by such financial institution during the period beginning from 1st April, 2019 to 31st March, 2023.
#What is the Quantum of Deduction Available?
The Quantum of deduction available is given below :
Actual interest payment on loan or
(whichever is lower)