esire to switch to elecVs are no
A car that is electric can aid in reducing income taxHere's how
The rising cost of costs for gasoline and other fuels are a major factor in many customers who want to change into electric motors. Electric vehicles are not just economical and efficient, but they also provide tax advantages. Find out more here.
Electric vehicles, also known as EVs, aren't just affordable, they also provide tax benefits in India. If you're contemplating buying one, be aware of the benefits of EVs and make an informed purchase.
According to the Union Budget 2019, the government offered tax-free incentives to purchase electric vehicles. The government further stated that any registered vehicle are covered within the scheme. In reality Section 80EEB of income tax was also introduced to provide tax incentives for electric vehicles.
What's this section all about?
Section 80EEB in the tax code provides a deduction for the interest charged on loans that is used for the purchase of electric vehicles. According to this section when you purchase the electric car, then you may receive tax deductions up to 1.5 lakh for interest for the amount of loan upon the purchase the electric car.
"The deduction can be used for business and personal reasons. The deduction allowed under this section is applicable until the time of payment of the loan," explained CA Ruchika Bhagat, MD, Neeraj Bhagat & Co in an interview with CNBC-TV18.com.
One should be aware that the deduction can be claimed only interest paid, and not the principal loan amount payments.
What are the criteria for eligibility for this?
It is available to people who are.
Therefore, if you're an AOP, HUF or partnership firm, corporation, or other taxpayer, you can't claim any tax benefits under this section.
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