If you are thinking of buying a vehicle for your personal use and are worried about the high cost of purchase because individuals who are not business owners do not get any tax benefit like deduction of interest as well as depreciation, then you should think of buying an electric vehicle.
From the Financial Year 2019-20 onwards, The Income-Tax Act, 1961 has introduced a new section 80EEB and as per this section if anyone buys electric vehicles from 1st day of April, 2019 but before the 31st day of March, 2023 and the vehicle is purchased through a loan from any financial institutions like bank, NBFC etc., then the individual shall get deduction up to INR 150,000 from their taxable income. This deduction is available from 1st April 2019 onwards till end of the vehicle loan.
There is no specific condition to be met except those listed below:
- The vehicle should be an electric vehicle
- The loan for vehicle purchased must be from a financial institution like bank, NBFC etc.
- The vehicle must be purchased between 1st day of April, 2019 and before the 31st day of March, 2023
For any query or assistance, you may send an email at the id letstalk@mjsheth.com
Author : Manish J. Sheth
Published : 31-10-2022
Disclaimer
This blog is meant purely for educational/research and discussion only to give a general understanding. Any subsequent amendments or changes to the law may change the tax implications. It is not legal advice and should not be treated as such. You may not rely on the information on this blog as an alternative to legal advice from your attorney or other professional service provider. Any use, reference to, distribution or reliance on the content of this blog may be done by reader at their own risk and the author is not responsible for any loss or damage incurred to the reader.