Deduction in respect of interest payable on loan taken for the purchase of Electric Vehicle is available under Section 80EEB of the Income Tax Act, 1961 as introduced by the Finance Act, 2019. The deduction is available to promote the purchase and sale of Electronic Vehicles in the country. Here is all you need to know about section 80 EEB:
1. Who is eligible claim deduction under Section 80EEB?
An individual who has taken a loan for the purchase of an Electrical Vehicle for personal/business use from any Financial Institution.
2. What is the benefit accruing to the eligible assessee under Section 80EEB?
Interest payable on such a loan would qualify for deduction under this section.
3. For what Period the benefit can be enjoyed?
The benefit of deduction under this section would be available from A.Y. 2020-21 and subsequent assessment years till the repayment of loan continues.
4. What is the amount of deduction an eligible assessee can get under Section 80EEB?
Interest Payable, subject to a maximum of Rs.150000/-.
5. No double benefit:
Interest allowed as deduction u/s 80EEB will not be allowed as a deduction under any other provision of the Act for the same or any other assessment year.
6. Conditions to be fulfilled:
Note: Only Interest Expense is to be allowed as Deduction.
CAclubindia
