Section 80EEB is a fantastic way to save taxes. Under this section, you can claim a deduction of up to Rs 1.5 lakh on the interest paid for a loan taken specifically to purchase an electric car. But there are some important conditions you need to follow to claim this deduction.
To claim this deduction, you must ensure the following:
First, the loan must be taken from a financial institution or a non-banking financial company specifically for buying an electric vehicle.
Second, the loan must be sanctioned between 1 April 2019 and 31 March 2023.
And third, the electric vehicle should meet the definition provided in the Act. It must be powered exclusively by an electric motor and have regenerative braking systems.
Let's go over the features of Section 80EEB.
First, this deduction is available only to individuals. Other entities like HUF, AOP, Partnership firms, or companies cannot claim this benefit. It's exclusively for individual taxpayers.
The good news is that you can claim a deduction for interest payments up to Rs 1,50,000. Whether you have an electric vehicle for personal use or business, this deduction can be a game-changer.
In the case of business use, any interest payments above Rs 1,50,000 can be claimed as a business expense. To claim as a business expense, it is necessary that the vehicle should be registered in the name of the owner or the business enterprise.
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26 дек 2023
