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TMI BlogPromoting Green Transportation tax Incentives for Electric Vehicles : Clause 132 of the Income Tax Bill, 2025 Vs. Section 80EEB of the Income Tax Act, 1961X X X X Extracts X X X X X X X X Extracts X X X X ..... statutory provisions in detail, analyzing their objectives, implications, and the nuances of their legislative language. The comparative analysis will highlight the similarities and differences between the two provisions, providing insights into their legal and practical implications. Objective and Purpose The primary objective of both Clause 132 and Section 80EEB is to incentivize the purchase of electric vehicles by providing a tax deduction for interest on loans taken for this purpose. This aligns with broader policy goals of reducing carbon emissions, promoting sustainable energy solutions, and decreasing reliance on fossil fuels. By offering financial incentives, the legislature aims to make electric vehicles more accessible to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng and ensures that the tax benefit is used precisely for its intended purpose. 5. Definition of Electric Vehicle The definition of "electric vehicle" in both provisions is identical, specifying a vehicle powered exclusively by an electric motor with a traction battery and regenerative braking system. This technical definition ensures that only genuine electric vehicles qualify for the deduction, aligning with the policy goal of promoting environmentally friendly transportation. Practical Implications The provisions have significant implications for various stakeholders: For Individuals Individuals benefit directly from these deductions, which reduce the effective cost of purchasing an electric vehicle. This financial incentive can ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... period covered by Section 80EEB. Conclusion Clause 132 of the Income Tax Bill, 2025, and Section 80EEB of the Income Tax Act, 1961, represent significant legislative efforts to promote the adoption of electric vehicles in India. By providing a tax deduction for interest on loans for electric vehicle purchases, these provisions align with broader environmental and energy policy goals. The comparative analysis reveals a high degree of similarity between the two provisions, reflecting a consistent policy approach. However, the introduction of Clause 132 indicates a potential extension or reinforcement of these incentives, underscoring the government's commitment to fostering sustainable transportation solutions. Full Text: Clause 132 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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