Business

Tax Saving 1.5 lakh exemption in income tax is available even on buying an electric scooter or car, know how to take advantage of buying an electric scooter or car.

Photo: PTI

Tax Saving: 1.5 lakh exemption in income tax is available even on buying an electric scooter or car, know how to take advantage

Highlights

  • If you are buying an electric vehicle, then the government gives you the benefit.
  • Total tax exemption up to Rs 1,50,000 on purchase of electric vehicle
  • Only individual taxpayers can avail this exemption

India is rapidly moving towards the revolution of electronic vehicles. Whether considering the inflation of petrol or to be economical while protecting pollution, people are increasingly buying electric vehicles in India. Various state governments have also announced huge discounts on the purchase of electric vehicles on their behalf. Registration and insurance is free in almost all states.

But do you know that by driving an electric vehicle, you are not only saving money spent on petrol, but you are also getting a chance to get tax exemption. However, as a personal use car is considered a luxury product under Indian tax laws, salaried professionals do not get any tax exemption on auto loans. But if you are buying an electric vehicle, then the government gives you the benefit.

what is the benefit

To encourage the use of electric vehicles in India, the government created a new section that exempts electric vehicle owners from paying tax. Under the Income Tax Act, tax exemption is available under section 80EEB while paying the loan for electric vehicle. You can avail total tax exemption of up to Rs 1,50,000 by purchasing an electric vehicle.

Buy a car or a scooter, everyone will get the benefit

No distinction has been made in the category of vehicles to avail this exemption in the Income Tax Act. Whether you buy a scooter or an electric SUV, you will get a tax benefit of Rs 150000 lakh in any case. Those who choose to buy an EV on loan will be eligible for a tax deduction of Rs 1.5 lakh on the interest paid on the loan amount under section 80EEB.

Who can take advantage?

Only individual taxpayers can avail this exemption. No other taxpayer is eligible for this deduction. That is, HUF, AOP, Partnership firm, company or any other type of taxpayer cannot take advantage of this exemption.

Only first time customers get discount

You have to note that this discount is available only once for each individual. That is, if you are a taxpayer and you already own an electric scooter or car before this financial year, then you cannot take advantage of this. Only new customers are eligible for section 80EEB loan tax deduction.

No discount on cash purchase

You have to remember that the benefit of exemption is available on interest on installments paid. In such a situation, if you are financing an electric vehicle, then only you will benefit. Keep in mind that the EV loan should be financed from a financial institution or a Non-Banking Finance Company (NBFC).

!function (f, b, e, v, n, t, s) {
if (f.fbq)
return;
n = f.fbq = function () {
n.callMethod ? n.callMethod.apply(n, arguments) : n.queue.push(arguments);
};
if (!f._fbq)
f._fbq = n;
n.push = n;
n.loaded = !0;
n.version = ‘2.0’;
n.queue = [];
t = b.createElement(e);
t.async = !0;
t.src = v;
s = b.getElementsByTagName(e)[0];
s.parentNode.insertBefore(t, s);
}(window, document, ‘script’, ‘//connect.facebook.net/en_US/fbevents.js’);
fbq(‘init’, ‘1684841475119151’);
fbq(‘track’, “PageView”); .

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts

Budget 2022: Four percent reduction in gold import duty, special package demand in the budget Budget 2022: Four percent reduction in gold import duty, special package demand in the budget

Photo:INDIA TV Budget 2022 Highlights Suggested reduction of import duty […]