Loaned Income Tax Benefits: When you buy a vehicle on loan, you can earn a rebate of up to Rs 1.5 lakh. You will be excluded from paying income tax under a new rule.
Electric vehicles are not only better for the environment, but also better than gasoline-powered automobiles. Due to the rising cost of gasoline and diesel, a growing number of people are opting for electric vehicles. Electric automobiles are less expensive to operate than gasoline ones. If you wish to buy an electric vehicle, you can obtain a significant tax break.
You can also get a significant loan discount. According to Income Tax laws, if a person buys a car, he does not qualify for a tax exemption on the loan because the car is a luxury item. Customers who purchase electric vehicles can now take advantage of the new section 80EEB, which exempts loans from income tax. In fact, the Indian government has established a new section 80EEB to encourage people to switch from conventional to electric vehicles.
According to a report on our partner website DNA, an interest subsidy of up to Rs 1.5 lakh will be available on electric vehicle purchases made with a loan under section 80EEB. Electric vehicles, both two-wheelers, and four-wheelers are eligible for this tax break.
The following conditions must be met in order to qualify for an exemption under section 80EEB:
This exemption is only available once to each person. Only those who have never owned an electric car previously are eligible for the loan exemption under section 80EEB.
– This rebate is only available to customers who are financing an electric vehicle. A loan for an electric vehicle must be obtained through a financial institution or a non-banking financial corporation (NBFC).
– This tax exemption will not apply to businesses. Individuals are the only ones who can benefit from the tax exemption.
Between April 1, 2019, and March 31, 2023, an income tax exemption on a loan for the purchase of an electric car is available. From the financial year 2020-2021, you can claim a tax exemption under section 80EEB.