Section 80EEB – Deduction in respect of interest paid on loan taken for the purchase of electric vehicle

Eligibility criteria

The deduction under this section is available only to individuals. This deduction is not available to any other taxpayer. Thus, if you are a HUF, AOP, Partnership firm, a company, or any other kind of taxpayer, you cannot claim any benefit under this section.

Amount of deduction

A deduction for interest payments up to Rs 1,50,000 is available under Section 80EEB. An individual taxpayer may have an electric vehicle for personal use or for business use. 

individual taxpayer should obtain the interest paid certificate and keep the necessary documents such as tax invoice and loan documents handy at the time of filing of the return

Conditions for claiming the deduction

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

The loan must be sanctioned anytime during the period starting from 1 April 2019 till 31 March 2023.