Section 80EEB - Deduction in respect of purchase of electric vehicle
In computing the total income of an individual for the financial year and not claiming a deduction under section 80EE, the individual shall be allowed a deduction of interest payable on loan taken from any financial institution for the purpose of purchase of an electric vehicle.
The maximum deduction under this section should be Rs. 1,50,000 and shall be allowed in computing the total income for the Assessment Year beginning on the 1st day of April, 2020 and subsequent assessment years.
The deduction under this section shall be subject to the condition that the loan has been sanctioned by the financial institution during the period beginning on the 1st day of April, 2019 and ending on the 31st day of March, 2023.
Where a deduction is claimed under this section, no such deduction shall be allowed under any other provision of this Act for the same or any other assessment year.
For the purpose of this section, “electric vehicle” means a vehicle which is powered exclusively by an electric motor whose traction energy is supplied exclusively by traction battery installed in the vehicle and has such electric regenerative braking system, which during braking provides for the conversion of vehicle kinetic energy into electrical energy.