Section 80EEB is a provision under the Income Tax Act, 1961, which provides tax benefits on the interest paid on loans taken for the purchase of electric vehicles (EVs). It aims to promote the adoption of electric vehicles and encourage individuals to contribute to sustainable and environment-friendly transportation. Here are some key points about Section 80EEB:
- Eligible Vehicles: Section 80EEB applies to loans taken for the purchase of electric vehicles, which are battery-operated electric vehicles. This includes electric cars, electric two-wheelers, electric buses, and electric goods carriers.
- Eligibility Criteria: The taxpayer should be an individual to be eligible for the deduction under Section 80EEB. Companies, firms, or other entities are not eligible for this deduction.
- Deduction Amount: The deduction under Section 80EEB is available on the interest paid on the loan for the purchase of an electric vehicle. The maximum deduction allowed is up to Rs. 1.5 lakh in a financial year. The deduction is over and above the benefits available under Section 24(b) on the interest paid on housing loans.
- Loan Sanction Period: The taxpayer must have taken the loan for the purchase of an electric vehicle from a financial institution or a non-banking financial company (NBFC) between specific dates. The sanction of the loan should be between 1st April 2019 and 31st March 2023.
- Filing of Income Tax Return: To claim the deduction under Section 80EEB, individuals need to provide the necessary details of the loan and interest paid for the purchase of the electric vehicle while filing their income tax return. The deduction will be applied while computing the taxable income.
Practical Course at:
