Tax savings on Purchase of EVs in India

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#taxsaving How to save Rs.45,000 in TAXES? 👉 Did you purchase any Electric vehicle on loan? ✅ @OlaElectric S1 Pro ✅ @atherenergy 450X ✅ @TataMotors Nexor or Tigor EV ✅ or any electric vehicle (2, 3 or 4 wheeler) If yes, Then read 🧵 to save upto 45K in taxes. (1/7)

Section 80EEB provides deduction of upto Rs. 1,50,000/- on Interest paid on loan for purchase of Electric vehicle (EV). Let's understand who, when, and how can claim this deduction with examples. (2/7) #Olaelectric #bounceinfinity #EV #FutureOfMobility

Who can claim deduction? ✅Individual ✅Purchased electric vehicle (bike, car, auto etc) ✅on a Loan from Bank or NBFC 🔴 HUFs/ Firms/ Companies can't claim deduction :( (3/7)

When can you claim deduction? ✅Loan is sanction between 1-4-2020 to 31-3-2023 ✅Interest is payable/paid* 🔴EV should NOT be a Hybrid. It should be PURE EV. * Note: Deduction for Interest can be claimed even if Interest is due but not paid. (4/7)

How can you claim? ✅Obtain Interest certificate from bank / NBFC ✅ Provide it to your CA while filing your ITR. Note: Sole proprietor using EV for business and claiming deduction under 80EEB. Then cannot claim depreciation in PGBP. (5/7)

Example: Purchased @TataMotors Nexon for Rs. 15L financed through loan on 1st April, 2021 at 12% p.a. for 3 years FY 21-22 Interest: Rs.1.22L (ref. image) 80EEB Deduction : Rs.1.22L (Lower of Rs.1.22L or 1.5L) Tax savings* : Rs.36.6K *Assuming 30% tax bracket (6/7)

Summary: ⏺️ Purchase EV (2,3,4 wheeler) on Loan ⏺️ Loan sanction b/w 1/4/20 - 31/3/23 ⏺️ Interest deduction up to Rs.1.5L I hope you found this thread useful :) Retweet and Share it with your friends who purchased a EV and didn't treat you 😆 🤣 #ElectricVehicles #EVs