Section 80EEB Explained How Your EV Loan Can Save You 1,50,000 Every Year

Thinking about buying an Electric Vehicle (EV)? The government offers a great tax break just for that! It's called Section 80EEB.

Here is the simple, quick version of how you can save money on your taxes by going electric.

What is this Tax Break?

Section 80EEB lets you take money off your taxable income for the interest you pay on your EV loan.

Maximum Saving: You can claim up to ₹1,50,000 (One Lakh Fifty Thousand Rupees) every year.

This deduction helps lower the actual cost of buying an EV!

 Check If You Qualify (The Easy Rules)

This benefit is only for people who meet these four simple points:

• Who: You must be an Individual (not a company).
• What: The loan must be for buying an Electric Vehicle (car or bike).
• From Where: You must have taken the loan from a bank or finance company.
• When: The loan must have been approved between April 1, 2019, and March 31, 2023.

 Important: This deduction applies only to the interest part of your loan payment, not the main amount you borrowed.

How to Get the ₹1.5 Lakh Deduction

It’s easy to claim this money when you file your yearly tax return:

• Get a Slip: Ask your bank for the Interest Paid Certificate. This slip shows exactly how much interest you paid during the financial year.
• Use the Old Rule: Make sure you are filing your taxes using the Old Tax Regime, as this benefit is usually not available in the new tax system.
• Claim It: Write down the interest amount (up to ₹1.5 lakh) when filling out your tax forms.

In Short

By choosing an EV, you are not just helping the planet—you are giving yourself a yearly bonus on your taxes!

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