State with reasons as per the provisions of Income Tax Act, 1961, if following transactions are useful for the purpose of Tax Planning: (i) Puneet purchased an electric vehicle on 17th July, 2020 for his personal use, he

Yes, this transaction is useful for tax planning. A new section 80EEB of the Income Tax Act, 1961 has been inserted to provide for a deduction of upto ₹1.50 lakhs for interest on loan taken for purchase of an electric vehicle from any financial institution. This deduction is available to an individual. Deduction upto ₹1.50 lakhs would be allowed in respect of interest payable on loan taken for purchase of electric vehicle provided loan should be sanctioned by the financial Institution during the period between 01.04.2019 to 31.03.2023. The section does not specify the nature of use of such electric vehicle whether for personal or business use. In light of the provisions mentioned above, Mr. Puneet can claim the deduction of ₹95,000 under section 80EEB from his income, even though it has been purchased for personal use, to save the tax payable.