Section 80EEB: Deduction in respect of Inerest payable on Loan taken from any Financial Institutuion for purchase of an Electric Vehicle (EV) provided the following conditions satisfied !
(1) To whom this Deduction is Allowed [Section 80EEB(1)]
The deduction shall be available to an individual.
(2) Purpose for which deduction under this section shall be allowed [Section 80EEB(1)]
The deduction shall be allowed on account of interest payable on loan taken by him from any financial institution for the purpose of purchase of an electric vehicle provided the conditions mentioned in section 80EEB(3) are satisfied.
(3) Quantum of Deduction [Section 80EEB(2)]
The deduction under section 80EEB(1) shall not exceed Rs.1,50,000 and shall be allowed in computing the total income of the individual for the assessment year beginning on 1.4.2020 and subsequent assessment years.
(4) Conditions to be satisfied for claiming Deduction under section 80EEB(1) [Section 80EEB(3)]
The deduction under section 80EEB(1) shall be subject to the condition that the loan has been sanctioned by the financial institution during the period beginning on 1.4.2019 and ending on 31.3.2023.
(5) Deduction of such interest not to be allowed under any other provisions of this Act [Section 80EEB(4)]
Where a deduction under this section is allowed for any interest referred to in section 80EEB(1), deduction shall not be allowed in respect of such interest under any other provision of this Act for the same or any other assessment year.
|For the purposes of this section,—
(a) “electric vehicle” means a vehicle which is powered exclusively by an electric motor whose traction energy is supplied exclusively by traction battery installed in the vehicle and has such electric regenerative braking system, which during braking provides for the conversion of vehicle kinetic energy into electrical energy;
(b) “financial institution” means a banking company to which the Banking Regulation Act, 1949 applies, or any bank or banking institution referred to in section 51 of that Act and includes any deposit taking non-banking financial company or a systemically important non-deposit taking non-banking financial company as defined in clauses (e) and (g) of Explanation 4 to section 43B.