The authorities of India has declared within side the union finances for 2019 an incentive to shop for electric powered vehicles (EV). Inside the finances, the finance minister has targeted that the superior battery and the enrolled EVs shall inspire underneath the policy. Latest segment 80EEB of profits tax act 1961 has commenced which lets in the tax deduction for the hobby supplied on mortgage acquired for the shopping for of the EVs below segment 80EEB from the evaluation 12 months 2020-21.
What is Income Tax Section 80EEB?
The deduction in the direction of the interest provided on mortgage opted via shopping for of the electrical car is opened below segment 80EEB of the earnings tax act 1961 that's noted through the finance act 2019. The deduction is to be had to growth the shopping for of EVs all throughout the country.
The tax blessings upon the shopping for of electrical vehicles. So as to be entitled to avail the tax benefits mentioned are the situations to get provided.
Key Benefits of Purchasing an Electric Vehicle Under Section 80EEB:
- Loans must be approved between January 4, 2019 and March 31, 2023.
- The deductible does not exceed Rupees 1.5 lakh.
- Credit for purchasing an electric vehicle
- Allow the interest portion of the loan as a deduction.
- You are the only person who can claim a deduction under a section.
- Loans must be chosen from a bank or mentioned NBFC.
The same deduction is only allowed for individual taxpayers. However, if an individual runs a company that owns a business and trains their vehicles to be used by the business, however, their account may receive benefits equal to the business expenses, regardless of the amount.
Vehicles must be registered in the owner's name or company name. Rupees1.5 lakh does not apply to that matter. Because that person officially declares it as a business expense and no one can use this expense twice.
Other Benefits of Buying an Electric Vehicle :
- Low-maintenance, zero-emissions when no fuel, an aging internal combustion engine, and a variety of high-wear moving parts with fewer than 20 electric motors.
- Electric vehicles have no road tax and registration fees are lower in some states, such as Delhi. Only
- Only the 5% tax rate, previously 12%, is applied as a lower tax on goods and services. When
- When RCs extend their tenure to 15 years, an environmental tax exemption for personal vehicles is introduced along with taxes.
- Electric vehicles will receive green tax benefits.