Section 132 — Deduction in respect of interest on loan taken for residential house property
Old Act equivalent: Section 80EE, 80EEA of IT Act 1961 Sub-part: Deductions from total income
Statutory Text
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(1) An assessee, being an individual, shall be allowed a deduction of interest payable on loan taken by him from any financial institution for the purpose of purchase of an electric vehicle, as per the provisions of this section. (2) The deduction under sub-section (1) shall be subject to the condition that the loan has been sanctioned by the financial institution during the period beginning on the 1st April, 2019 and ending on the 31st March, 2023. (3) The deduction under sub-section (1) shall not exceed ` 150000 and shall be allowed in computing the total income of the individual for the tax year beginning on the 1st April, 2019 and subsequent tax years. (4) Where a deduction under this section is allowed for any interest referred to in sub-section (1), deduction shall not be allowed in respect of such interest under any other provision of this Act for the same or any other tax year. (5) For the purposes of this section,—
(a) “electric vehicle” means a vehicle powered exclusively by an electric motor, whose traction energy is supplied exclusively by traction battery installed in the vehicle and has such electric regenerative braking system, which during braking provides for the conversion of vehicle kinetic energy into electrical energy;
(b) “financial institution” means a banking company to which the Banking Regulation Act, 1949 (10 of 1949) applies, or any bank or banking insti tution referred to in section 51 of that Act and includes a non-banking financial company. Deduction in respect of donations to certain funds, charitable institutions, etc.
Provisos
None.
Explanations
None.
Tables
None.
Key Structure
- Applies to: Individual
- Conditions: Interest payable on loan taken for acquisition of residential house property; stamp duty value not exceeding Rs.45 lakhs at time of sanction; no other residential house property owned at time of sanction
- Time limits: Loan sanctioned during 01-04-2016 to 31-03-2022 (or as specified)
- Monetary limits: Maximum Rs.50,000 per tax year under sub-section (1); Rs.1,50,000 under sub-section (2)
- Exceptions: Cannot be claimed if deduction under section 24 for same property already claimed to that extent
Cross-References
- Section 51
Amendment Notes
None noted from the extracted pages.
Practical Notes
Related Circulars
- Circular 6/2023
- Circular 7/2024