Income-tax Act, 1961Section 80EEB
- Up to ₹1,50,000 interest on EV loan
- Loan sanctioned 1 April 2019 to 31 March 2023
- Individuals only
- Vehicle powered exclusively by an electric motor
Applies to FY 2025-26 (AY 2026-27) and earlier years.
IT Act 1961 → 2025 / Section 80EEB
DeductionsSection 80EEB → Section 132
Interest on loan for purchase of an electric vehicle
Section 80EEB of the old Income-tax Act, 1961 · new section 132 under the Income-tax Act, 2025
New reference Section 132
Income-tax Act, 2025Section 132
- Section 132: same deduction, cap ₹1,50,000
- Same sanction window
- Individuals only
- No double deduction for the same interest
Applies from tax year 2026-27 (from 1 April 2026).
What changed
Renumbered; available only for loans sanctioned up to 31 March 2023, for the remaining loan tenure.
Practice notes
- Not available under the default new tax regime.
Frequently asked
Is EV loan interest deduction 80EEB available in the new Act?
Yes, as section 132 of the Income-tax Act, 2025, up to ₹1,50,000, only for loans sanctioned between 1 April 2019 and 31 March 2023.
What is section 80EEB called in the new Income-tax Act, 2025?
Section 80EEB of the Income-tax Act, 1961 corresponds to Section 132 of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).
What changed in section 80EEB under the new Income Tax Act?
Renumbered; available only for loans sanctioned up to 31 March 2023, for the remaining loan tenure.
Is section 80EEB still applicable for FY 2025-26?
Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 80EEB of the 1961 Act. Section 132 of the 2025 Act applies from tax year 2026-27.