Section 80 EEB - Deduction for interest paid on loan taken for the purchase of electric vehicle

In the Union Budget 2019, Government have announced an incentive for purchasing Electric Vehicles. A new section 80EEB has been introduced allowing a deduction for interest paid on loan taken for the purchase of electric vehicles from the AY 2020-21. Features of these section is described below.

1.    This section is allowed only for individuals 

2.  Deduction upto Rs. 1.5 lakhs can be allowed.

3. The loan must be taken from a financial institution or a non-banking financial company for buying an electric vehicle..

4.   The loan must be sanctioned  during the period  from 01-04-2019  to  31-03-2023.