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80EEB- Deduction in respect of interest on loan taken for purchase of electric vehicle  [Updated as on Dec 31, 2019]

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• Deduction is available to an individual assessee.

• Any amount payable by way of interest during the previous year by the assessee on loan taken by him/her for the purpose of purchasing an electric vehicle qualifies for deduction.

• An electric vehicle for this purpose means a vehicle powered exclusively by an electric motor using regenerative braking system whereby kinetic energy is converted into electric energy during braking of vehicle.

• Loan may be taken from any financial institution and sanctioned during the period beginning on the 1st day of April, 2019 and ending on the 31st day of March, 2023. Financial institution means banks including subsidiary banks and regional rural banks and includes deposit taking non-banking financial company as well as systemically important non-deposit taking non-banking financial company as defined in clauses (e) and (g) of Explanation 4 to section 43B.

• Deposit taking non-banking financial company means a non-banking financial company which is accepting or holding public deposits and is registered with the Reserve Bank of India.

• Systemically important non-deposit taking non-banking financial company means a non-banking financial company which is not accepting or holding public deposits and having total assets of not less than five hundred crore rupees as per the last audited balance sheet and is registered with the Reserve Bank of India.

• Where a deduction under this section is allowed for any interest under this section, 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

 

 

 

Amount of deduction

 

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• The amount of eligible deduction shall be the interest amount payable on the loan during the relevant previous year subject to a limit of Rs.150000.

• The deduction shall be available from the assessment year beginning on the 1st day of April, 2020 and subsequent assessment years

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