Get EV loan sanctioned by Mar 31 to avail benefit under Section 80EEB

If electric vehicle is for personal use, avail deduction on interest paid; if for business purpose, treat as expense

With barely a fortnight to go for the March 31 deadline, you need to act fast if you wish to qualify for the Section 80EEB benefit. This section was introduced in the 2019 Union Budget to promote the usage of electric vehicles (EVs).  

Suresh Surana, founder, RSM India, says, “Section 80EEB of the Income-Tax (I-T) Act, 1961, provides a deduction on interest paid on a loan taken from a financial institution to purchase an EV. A deduction of up to Rs 1.5 lakh can be availed under this section, provided a few conditions are fulfilled.”

Vivek Jalan, partner, Tax Connect