Updated: Jun 10
A new section 80EEB has been introduced allowing a deduction for interest paid on loan taken for the purchase of electric vehicles from the AY 2020-21.
Only Individual who has taken a Loan for purchase of an Electrical Vehicle from any Financial Institution
Maximum Amount of deduction
The benefit of deduction under this section would be available from A.Y.2020-21 and subsequent assessment years till the repayment of loan continues. A deduction for interest payments up to Rs 1,50,000.
Why section was Introduced?
To promote Electrical Vehicles
To Reduces dependence on oil imports
To Reduces Carbon Emissions