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Section 80EEB – Tax Benefit for electric vehicle purchase loan

July 5, 2022
Section 80EEB – Tax Benefit for electric vehicle purchase loan

Are there any tax benefits for buying an electric vehicle on loan? Yes, in order to promote electric vehicle usage, the Government came out with this new Section 80EEB where the loan taken for the purchase of an electric vehicle can be claimed as a deduction like how you can claim the decution for your housing loan interest.

Section 80EEB - Tax Benefit for electric vehicle

Section 80EEB has been inserted from the assessment year 2020-21. Under this section, the deduction is available if the following conditions are satisfied.

Section 80EEB – Tax Benefit for electric vehicle purchase loan

The conditions mentioned under this section for eligibility are as below.

# The assessee is an individual. Hence, the deduction is not available for others.

# He has taken a loan for the purpose of purchase of an electric vehicle. For this purpose, an “electric” vehicle means –

  • A vehicle that is powered “exclusively” by an electric motor whose traction energy is supplied exclusively by a traction battery…
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