New Tax Exemption on Loan for Purchase of Electric Vehicles U/s 80EEB With Automated Income Tax Form 16 Part B for F.Y. 2018-19
In the full Budget, displayed on July 5, 2019, another Section 80EEB was presented which would surrender charge exception to Rs 1.5 Lakhs on intrigue paid for the buy of electric vehicles gave it satisfies certain conditions.
Following are the qualification conditions for Section 80EEE:
- The advance ought to be authorized by the monetary establishment (banks, NBFCs, and so on) between April 1, 2019, to March 31, 2023
- Only the intrigue some portion of the advance is qualified for conclusion u/s 80EEB
- The most extreme measure of derivation under this area 80EEB in a money-related year is Rs 1.5 lakhs
- This is well beyond 1.5 Lakh derivation u/s 80C
The move is in the correct government from condition point of view as it would help to some degree in quicker reception of electric vehicles. Starting today, we don’t have much decision for electric vehicles. There’re only two electric vehicles and both by Mahindra:
- Mahindra Verito (Rs 8.5 to 9.5 Lakhs)
- Mahindra e2o PLUS (Rs 8.5 to 11.5 Lakhs)
Accepting vehicle credit of Rs 8 Lakh for a long time at 11% intrigue the EMI would be Rs 17,394. Over the 5 years, the all-out intrigue outgo would be Rs 2.44 lakhs and accepting to be in 30% expense section, you would spare Rs 72,000 in charges.
I don’t think only this is going to push individuals to purchase electric autos as the framework to run these vehicles is still not set up yet. Be that as it may, by giving lucidity for the next 5 years about the tax cut, everybody from vehicle organizations, foundation developers to buyers may watch out for rising new electric vehicles. In this Budget, the GST on electric autos have been decreased to 5% – which would further assistance in bringing down the expense
In any case, for the time being not many citizens would most likely take tax reduction of Section 80EEB.
Download Automated Income Tax Form 15 Part B for F.Y. 2018-19 in the New Format of Form 16 Part B [ This Excel Utility can prepare at a time 50 Employees Form 16 Part B for F.Y.2018-19]