How to Save Income Tax by buying Electric Vehicle

#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
Rs. 1,50,000/-
(whichever is lower)

 

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