EV Loan? Save ₹1.5L in Tax Under Section 80EEB

If you took a loan to buy an electric vehicle, Section 80EEB lets you deduct up to ₹1.5 lakh of interest paid from your taxable income every year — but only under the old tax regime and only if you meet specific conditions.

Here's what happened: Section 80EEB of the Income-Tax Act allows individuals to claim a deduction of up to ₹1.5 lakh per year on interest paid on loans taken to purchase electric vehicles.. The deduction is available only under the old tax regime — taxpayers who have opted for the new default regime cannot claim this benefit at all.. The loan must be taken from a financial institution or NBFC (not from a friend or employer), and the EV must be registered in the taxpayer's name to qualify..

What you should do: Compare your tax outgo under both regimes before filing ITR — include the ₹1.5L 80EEB deduction to see if the old regime saves you more money overall.. Collect your loan interest certificate from your bank or NBFC for FY2024-25 now; you will need the exact interest figure to claim this deduction accurately.. Check that your electric vehicle is registered in your personal name — if it is in a company or spouse's name, you cannot individually claim this deduction..

Section 80EEB covers both two-wheelers and four-wheelers — even an electric scooter loan qualifies, making this one of the easiest ₹1.5L deductions most salaried buyers overlook.