Electric bikes are taking the streets by storm. They are beneficial for the environment and easy on your wallet when it comes to running costs, but what about the initial purchase price? The Indian government offered tax rebates to owners of e-bikes. Let's delve into the details.
Tax Benefits of an e-bike?
One can claim a tax rebate under Section 80EEB of the ITA. The electric bike tax deductionbenefit is just one of the government initiatives to popularise the adoption of e-vehicles and lower the dependence on fossil fuels.
Here is what you need to know about claiming an e-bike tax credit under this Section for interest paid on an e-bike loan:
You can save up to INR 1.5 lakh on the interest portion of your e-bike loan.
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Individual Taxpayers Only
This benefit is currently available for individual taxpayers and not businesses.
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Claim the Excess for Business Use
If you buy an e-bike for commercial purposes and the interest paid is more than INR 1.5 lakh, you can claim a tax rebate on the interest you have paid over and above INR 1.5 lakh. However, the e-bike must be registered under the name of the business enterprise or owner.
Documents Required
The loan must be sanctioned and taken from NBFCs and banks. Keep your loan interest certificate and other relevant documents handy for filing your income tax return.
Conclusion
The popularity of e-bikes is undeniable. But remember, just like with a regular bike, you must get basic third-party bike insurance for your vehicle. It is a small price to pay for your security and peace of mind.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the relevant industry. It is advised to verify the relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.
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