Section 80EEB — Electric Vehicle Loan Interest Deduction
If you bought an electric vehicle on a loan, Section 80EEB lets you deduct up to ₹1,50,000 of the interest each year. The window to take a fresh qualifying loan has closed, but if your loan was sanctioned within it you keep claiming until the loan is repaid. The calculator below shows this year’s deduction and tax saved. Stated under the Income-tax Act, 2025 (Section 132) and the Act, 1961 (Section 80EEB).
Deduction limit
₹1,50,000
interest per year
Loan sanctioned
Apr 2019 – Mar 2023
window now closed
Tax regime
Old regime only
not in the new regime
Section
132
was 80EEB (Act 1961)
What Section 80EEB (now Section 132) covers
Section 80EEB gives an individual a deduction of up to ₹1,50,000 a year for interest on a loan taken to buy an electric vehicle — two-wheeler or car, for personal or business use. Under the new Income-tax Act, 2025 it continues as Section 132. It is an old-regime deduction, and the government’s window for taking a fresh qualifying loan (sanction between 1 April 2019 and 31 March 2023) has closed; but if your loan was sanctioned within that window, you continue to claim the interest each year until it is repaid.
| Point | Rule |
|---|
| Deduction | Interest paid, up to ₹1,50,000 a year |
| Principal | Not deductible — interest only |
| Who can claim | Individuals only (not HUF or firms) |
| Loan source | Bank or notified NBFC |
| Sanction window | 1 April 2019 to 31 March 2023 (now closed) |
| Regime | Old regime only |
Old Act 1961 vs new Act 2025
Income-tax Act, 1961
- Deduction: Section 80EEB
- Up to ₹1,50,000 interest a year
- Loan sanctioned Apr 2019 to Mar 2023
- Applies for FY 2025-26 and earlier
Income-tax Act, 2025
- Deduction: Section 132
- Limit and conditions unchanged
- Old regime only
- Applies from Tax Year 2026-27 (1 April 2026)
Section numbers reflect the Income-tax Act, 2025 in force from 1 April 2026. The ₹1,50,000 limit and the sanction-window conditions carry forward from Section 80EEB. Confirm the live reference on the income-tax portal before filing.
Related tools and guides
Frequently asked questions
Can I still claim 80EEB?
Yes, if your electric-vehicle loan was sanctioned between 1 April 2019 and 31 March 2023. The window for taking a fresh qualifying loan has closed, but for a loan already sanctioned in that window you keep claiming the interest — up to ₹1,50,000 a year — until the loan is repaid, in the old regime.
Is the principal repayment deductible?
No. Only the interest on the electric-vehicle loan qualifies under 80EEB, up to ₹1,50,000 a year. The principal repayment gives no deduction.
Can I claim 80EEB in the new regime?
No. Section 80EEB (Section 132 under the Act 2025) is an old-regime deduction. Under the new default regime the EV-loan interest is not deductible; you must opt for the old regime.
Does it cover two-wheelers?
Yes. The deduction covers a loan for any electric vehicle — electric two-wheelers as well as cars — for personal or business use, provided the loan was sanctioned within the eligible window by a bank or notified NBFC.
Do the rules change under the Income-tax Act, 2025?
The substance is unchanged. From Tax Year 2026-27 the provision is renumbered Section 132, but the ₹1,50,000 interest limit and the sanction-window conditions are the same as Section 80EEB.
This page is a general guide for individual taxpayers and is not tax advice. Eligibility, the sanction window and conditions depend on your specific facts. Section references to the Income-tax Act, 2025 (Section 132) apply from Tax Year 2026-27 (FY 2026-27); the Income-tax Act, 1961 (Section 80EEB) applies for FY 2025-26 and earlier. Verify the current position on the income-tax portal or with your advisor before filing.
