Business Use: If an EV is used for business, it must be reported as an asset, and the loan as a liability. The business can claim the interest as an expense and also claim depreciation. The vehicle must be registered in the name of the business or the owner.
Example: Mr. Swapnil, a salaried individual, purchased an EV with a loan sanctioned on May 25, 2022. He can claim the interest deduction under Section 80EEB for FY 2022-23 since the loan was sanctioned before March 31, 2023.