Section 80EEB —
Rs1.5L EV Loan Interest Deduction
The deduction of up to Rs1,50,000 a year on interest paid on an electric-vehicle loan: the closed sanction window, who can claim it, why it works only in the old regime, and how to enter it in your ITR.
Section 80EEB gives a deduction of up to Rs1,50,000 a year on the interest paid on a loan taken to buy an electric vehicle (two- or four-wheeler). The loan must have been sanctioned between 01 April 2019 and 31 March 2023 by a bank or specified NBFC. The window is closed — no new loans qualify — but borrowers inside the window keep claiming on ongoing EMIs. Available only to individuals and only under the old tax regime.
Section 80EEB Eligibility Conditions
All four conditions must be met. The deduction is over and above the Chapter VI-A limits like Section 80C and Section 80D, but it cannot be combined with the new tax regime.
| Condition | Requirement | Status |
|---|---|---|
| Loan sanction date | Between 01-Apr-2019 and 31-Mar-2023 (only sanction date matters) | Window closed |
| Taxpayer | Individual only — not HUF, firm, LLP or company | Individual |
| Lender | Banking company or specified NBFC — not employer/relative | Bank / NBFC |
| Vehicle | Electric vehicle (2W or 4W); hybrids do not qualify | EV only |
| Tax regime | Old regime only — blocked under new default regime | Not in new |
No cap on vehicle price or loan amount; no first-time-buyer condition. Only the interest is deductible — principal repayment is not.
Loans sanctioned after 31 March 2023 do not qualify — the window has not been extended. And because the new regime is now the default, you must actively opt for the old regime to claim 80EEB. If your only reason to stay in the old regime is this deduction, compare total tax under both regimes before deciding.
80EEB vs 80EE vs 80EEA
Three "extra interest" deductions were introduced to nudge specific purchases. 80EEB is the only one for a vehicle; the other two are for home loans.
| Section | Asset | Max deduction | Sanction window | Key condition |
|---|---|---|---|---|
| 80EEB | Electric vehicle (2W/4W) | Rs1.5L / yr | 01 Apr 2019 – 31 Mar 2023 | Individual; bank/NBFC loan; no price cap |
| 80EEA | Affordable house | Rs1.5L / yr | 01 Apr 2019 – 31 Mar 2022 | Stamp value ≤ Rs45L; first-time owner |
| 80EE | House | Rs50k / yr | 01 Apr 2016 – 31 Mar 2017 | Loan ≤ Rs35L; value ≤ Rs50L; first-time |
All three are Chapter VI-A deductions available only under the old regime. 80EEB is a self-link above kept for context only.
80EEB or Business Expense?
If the EV is used for business or profession, the interest can instead be claimed as a business expense, and depreciation on the vehicle cost as well — but never the same rupee of interest twice.
Claim under 80EEB when
- You are a salaried / individual taxpayer with no business use
- Annual EV-loan interest is up to Rs1.5 lakh
- You already file (or benefit from) the old regime
Prefer business expense when
- The EV is genuinely used in your business or profession
- Interest exceeds Rs1.5 lakh a year (claim the excess as expense)
- You want depreciation on the vehicle cost too
Claim interest up to Rs1.5 lakh under 80EEB and any interest above that as a business expense, with the vehicle registered to the owner or business and the business-use portion documented. Claiming the same interest under both heads invites disallowance.
How Much 80EEB Saves You
Rs10 lakh EV loan at ~9% — first-year interest around Rs88,000, fully within the Rs1.5 lakh cap. Tax saved depends on your slab (old regime).
Deduction claimed
Tax saved (30% slab)
At a 20% slab the same deduction saves about Rs18,300, and at 5% about Rs4,580. Use the income-tax calculator to compare your total tax with and without the deduction across both regimes.
Old regime — 80EEB allowed
- Claim up to Rs1.5L EV-loan interest
- Stackable with 80C, 80D, HRA, home-loan interest
- Worthwhile if your total old-regime deductions are large
New (default) regime — 80EEB blocked
- No 80EEB and most Chapter VI-A deductions gone
- Lower slab rates + Rs75k standard deduction (salary)
- Rebate makes income up to Rs12L tax-free
How to Claim 80EEB in Your ITR
- Loan sanction letter showing date within the window
- Annual interest certificate from the bank or NBFC
- Vehicle invoice and registration certificate (electric)
- Confirmation you are filing under the old regime
Not sure if your EV loan still qualifies or which regime wins?
File ITR with TaxClue →Section 80EEB — Frequently Asked Questions
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