Claim up to Rs. 1.5 lakh tax deduction on EV loan interest under Section 80EEB. Valid for loans sanctioned by March 2023 under the old tax regime.
Section 80EEB lets an individual claim an income tax deduction of up to Rs 1.5 lakh a year on the interest paid on a loan taken to buy an electric vehicle. The loan must be sanctioned by a bank or financial institution between 1 April 2019 and 31 March 2023, and the deduction is available under the old tax regime.
Eligibility Criteria for Deduction””
Frequently Asked Questions (FAQ)
What is Section 80EEB?
Section 80EEB is an income tax deduction on the interest paid on a loan taken to buy an electric vehicle. Eligible individuals can claim up to Rs 1.5 lakh of such interest in a financial year.
Who can claim the Section 80EEB deduction?
The deduction is available only to individual taxpayers. Companies, firms, HUFs and other entities cannot claim it. The vehicle loan must be taken for an electric vehicle from a bank or notified financial institution.
What are the loan conditions for 80EEB?
The loan must be sanctioned by a financial institution between 1 April 2019 and 31 March 2023. The deduction applies to the interest component and can be claimed until the loan is repaid, subject to the annual limit.
Is Section 80EEB available under the new tax regime?
No. Like most deductions, 80EEB can be claimed only under the old tax regime. If you opt for the new regime, you cannot claim this benefit, so compare both regimes before filing.
