New Car in FY25? Claim These 5 Tax Benefits by March 31
If you bought a car this Diwali for business or as an EV, you can claim tax deductions and depreciation before March 31. Miss this deadline and those savings are gone for the year.
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The depreciation on a ₹12L business car saves more tax than 3 years of chai bills.
Your EV car loan saves you this much in tax deductions under Section 80EEB
Key Takeaways
Check your loan statement for total EV interest paid in FY2024-25 and note it for Schedule VI-A (Section 80EEB) in your ITR before the filing deadline.
Download Form 26AS from the income tax portal right now and verify that your 1% TCS on the car purchase is correctly recorded — disputes need time to resolve.
If you are self-employed or run a small business, ask your CA to add the car depreciation claim under business expenses before March 31 advance tax calculations close.
If you bought a car this Diwali for business or as an EV, you can claim tax deductions and depreciation before March 31. Miss this deadline and those savings are gone for the year.
Here's what happened: Section 80EEB allows EV buyers to deduct up to ₹1.5 lakh per year in loan interest from taxable income, available to both salaried and self-employed individuals.. Business owners and self-employed professionals can claim 15% depreciation on a privately purchased car used for work in the same financial year of purchase.. Cars priced above ₹10 lakh attract 1% TCS at the dealership; this amount appears in Form 26AS and can be credited against your total tax payable when filing ITR..
What you should do: Check your loan statement for total EV interest paid in FY2024-25 and note it for Schedule VI-A (Section 80EEB) in your ITR before the filing deadline.. Download Form 26AS from the income tax portal right now and verify that your 1% TCS on the car purchase is correctly recorded — disputes need time to resolve.. If you are self-employed or run a small business, ask your CA to add the car depreciation claim under business expenses before March 31 advance tax calculations close..
Pro tip: EV loan interest under 80EEB is available even on a second car loan — unlike home loan deductions, there is no restriction to a single vehicle.
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- [1]“Bought A New Car During Diwali? Check These Tax Benefits Before March 31” NDTV Profit - Latest · 5 Nov 2026
This article is reported by GoCredit's Editorial Team based on the source above. GoCredit synthesises, contextualises, and adds India-borrower-relevant analysis. We are not the original publisher.
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