Electric vehicle are pollution free and green initiative by the government. The government of India is promoting electrical vehicles heavily. A special income tax benefit under section 80EEB is announced by the government for EVs. The new income tax section 80EEB allows a deduction for the interest paid on the loan taken for the purchase of EV. This section is applicable from AY 2020-21. In this post, we would discuss who can avail this 1.5 lakhs tax benefit on car loan interest, list of electric vehicles and documents to be submitted to get tax benefit. How to save on car and bike loan interest .
The maximum cap on the amount is Rs.150000 in a financial year.
We can get loan up to 90% of electric vehicle value. The deduction under section 80EEB is provided only to the individual tax payers. The deduction is provided only for interest payment. The maximum cap on the amount is Rs.150000. The electric vehicle can be purchased for personal usage or business usage. The loan should be taken during the time period starting from 1 April 2019 till 31 March 2023.
Realize Your contribution to the Nation, By Income Tax. Understand Income Tax and Your Contribution.
List of electric cars available in India:
All the price of the vehicle are Ex-showroom price.
Hyundai Kona Electric ( 24 Lakhs) :
Mahindra E Verito(11 Lakhs):
Tata Tigor EV(11 lakhs) :
MG ZS EV(24 Lakhs):
Tata Nexon EV(17 Lakhs) :
Mahindra e2o PLUS(8 Lakhs):
Electric Two-Wheelers in India :
TVS iQube(1.10 Lakhs):
Hero Electric Photon 48V (65,000) :
Bajaj Chetak(1.15 lakhs) :
Revolt RV400 (1.2 Lakhs) :
Joy e-bike Monster(1 lakhs) :
How to get 80EEB tax benefit:
We have to take loan from financial institutions or non banking financial company to avail this benefits. We have to submit interest paid certificate at the time of filing income tax return or to the employer while submitting tax proof documents.
The benefit is offered to 3 wheelers, 4 wheelers and electric 2 wheelers.
Interest payment subject to maximum Rs.150000 is eligible for income tax benefit under section 80EEB.
Invest for longer duration to less tax on Mutual funds gain.
No. HRA is not included in Section 80C(1.5 lakhs). PG receipt also works for HRA.