Section 80EEB — ₹1.5 lakh deduction on EV loan interest

Quick frame: Section 80EEB gives a ₹1.5 lakh deduction on interest paid on electric vehicle loans. Loans must have been sanctioned between 1 April 2019 and 31 March 2023. Available only under old tax regime. Lifetime cumulative across all EV loans by the same individual.

How it works

You bought an EV with a loan. Each year, you pay X amount of interest. Up to ₹1.5 lakh of that interest is deductible from your total income.

For someone in 30% slab:

• Annual interest paid: ₹1,20,000
• Deduction allowed: ₹1,20,000 (since < cap)
• Tax saved: ₹1,20,000 × 30% × 1.04 (cess) = ₹37,440/year

Use the Section 80EEB Calculator for your specific case.

Who qualifies?

• Individual or HUF (not companies / firms / etc.)
• Loan from banks or NBFCs (not personal loans from family)
• EV loan only — not retrofit kits, not hybrid vehicles
• Loan sanctioned in the qualifying window

What's NOT covered

• Hybrid vehicles (only pure EVs)
• Used EV purchases (only first registration)
• Charging infrastructure costs
• Home-charging setup costs
• Loans sanctioned before 1 Apr 2019 or after 31 Mar 2023

Window has closed for new loans

The qualifying window ended 31 March 2023. Loans sanctioned after that don't qualify even if you're paying interest now.

If you're paying off an existing pre-2023 loan, you can continue claiming 80EEB until the loan is repaid.

Old vs new regime

Under new regime (default since FY 25-26), 80EEB is NOT available. If you're paying significant EV loan interest, the old regime might still win — even with the loss of 80C/HRA.

Run both with the Income Tax Calculator to see.

FAQ

Q. Can both spouses claim 80EEB on same EV? A. No — only one. Whoever's loan it is.

Q. Two-wheeler EV qualify? A. Yes — Ather, Ola, TVS iQube qualify. Section 80EEB doesn't restrict to 4-wheelers.

Q. Can I top up existing EV loan? A. Top-up loans on the same EV qualify if original loan was sanctioned in the window.

Q. EV bought without loan — can I claim? A. No — 80EEB is on loan interest. Outright purchase has no deduction.