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Buy this car or bike to save more on income tax

By Team YourCoimbatore on 18th November 2021
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Electric vehicles are not only environmentally friendly but also better than conventional fuel-powered vehicles. With the rising price of petrol and diesel, many people are now buying electric vehicles. It costs less to operate an electric vehicle than fuel vehicles. If you want to buy an electric vehicle, you can get a huge deduction on income tax.

Since cars come under the category of luxury goods, according to the Income Tax Rules, if a person buys a car, he does not get any tax exemption on the loan he buys for it. But customers who buy electric vehicles now can get income tax deductions for loans under the new section 80EEB.

The Government of India has added a new section called 80EEB. As a result, more and more people are switching from conventional fuel vehicles to electric vehicles due to the availability of tax breaks with various benefits.

According to some media reports, borrowing an electric vehicle under the 80EEB category can cost up to Rs. Up to Rs 1.5 lakh interest subsidy is available. The tax exemption is available for two-wheelers and four-wheelers, as well as electric vehicles.

A person can avail of this exemption only once. This means that only a person who has not owned an electric vehicle before can get a loan waiver under Section 80EEB. This discount is only available to those who buy an electric vehicle on credit. The loan for the electric vehicle should be obtained from a financial institution or NBFC.

Logeshwaran J

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