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Section 80EEB — ₹1.5 Lakh Deduction on Electric Vehicle Loan Interest
Updated: 16 July 2026 | Income Tax Act, 1961 | Old regime only
Section 80EEB allows a deduction of up to ₹1,50,000 per financial year on the interest paid on a loan taken to purchase an electric vehicle (two-wheeler or four-wheeler). The loan must have been sanctioned between 01 April 2019 and 31 March 2023 by a bank or specified NBFC. The sanction window is now closed — no new loans qualify — but borrowers whose loans were sanctioned within the window continue to claim the deduction on ongoing EMIs. Available only to individuals and only under the old tax regime.
₹1.5L
Maximum interest deduction per year under Section 80EEB On EV loan interest only (not principal). No cap on vehicle price or loan amount. Claimable every year of the loan tenure.
⚠
The sanction window is CLOSED and Section 80EEB is NOT available under the new tax regime. Loans sanctioned after 31 March 2023 do not qualify. If your loan was sanctioned between 01-Apr-2019 and 31-Mar-2023, you can keep claiming the interest deduction on ongoing EMIs — but only if you file under the old regime.
Eligibility Conditions for Section 80EEB
CONDITION 1
Loan Sanction Period
The loan must have been sanctioned between 01 April 2019 and 31 March 2023. Only the sanction date matters — disbursement and vehicle delivery can be later. The window has not been extended; as the law stands, no loan sanctioned after 31 March 2023 is eligible.
CONDITION 2
Individual Taxpayer Only
Only individuals can claim Section 80EEB. HUFs, AOPs, partnership firms, LLPs and companies are not eligible. There is no first-time-buyer condition — you may already own other vehicles.
CONDITION 3
Loan from a Financial Institution
The loan must be from a banking company or a specified NBFC (deposit-taking NBFC or systemically important non-deposit-taking NBFC). Loans from employers, relatives or informal lenders do not qualify.
CONDITION 4
Purchase of an Electric Vehicle
The loan must be for purchasing an electric vehicle — powered exclusively by an electric motor with traction energy supplied exclusively by a traction battery, and fitted with electric regenerative braking. Both two-wheelers and four-wheelers qualify. Hybrids do not. There is no condition on the vehicle’s price, possession date or usage.
DEDUCTION
Interest Only, Up to ₹1,50,000 Per Year
The deduction covers interest paid during the financial year, capped at ₹1,50,000. Principal repayment is not deductible under 80EEB. The deduction is available every year until the loan is repaid — there is no limit on the number of years.
Section 80EEB vs 80EE vs 80EEA — Comparison
Section
Asset
Max Deduction
Loan Sanction Period
Key Conditions
Section 80EEB
Electric vehicle (2W or 4W)
₹1,50,000 interest / year
01 Apr 2019 – 31 Mar 2023
Individual only; loan from bank/NBFC; no vehicle price cap; old regime only
Section 80EEA
Affordable house
₹1,50,000 interest / year (additional)
01 Apr 2019 – 31 Mar 2022
Stamp duty value ≤ ₹45L; first-time owner; old regime only
Section 80EE
House
₹50,000 interest / year (additional)
01 Apr 2016 – 31 Mar 2017
Stamp duty value ≤ ₹50L; loan ≤ ₹35L; first-time owner; old regime only
EV Used for Business — 80EEB vs Business Expense
If the electric vehicle is used for business or profession, the loan interest can alternatively be claimed as a business expense, and depreciation can be claimed on the vehicle cost. The rules to remember:
RULE
No Double Claim on the Same Interest
The same rupee of interest cannot be claimed both under Section 80EEB and as a business expense. A common structure: claim interest up to ₹1.5 lakh under 80EEB, and any interest above ₹1.5 lakh as a business expense — with the vehicle registered in the name of the owner or the business, and the business-use portion properly documented. Claiming the same interest under both heads risks disallowance and penalty in assessment.
Is Section 80EEB Still Relevant in FY 2026-27?
Yes — for existing borrowers. EV loans are typically 3–7 year tenures, so many taxpayers whose loans were sanctioned between FY 2019-20 and FY 2022-23 are still paying EMIs and can still claim up to ₹1.5 lakh of interest each year under the old regime. If you bought an EV on a loan sanctioned within the window, check your bank’s interest certificate each year and enter the amount in Schedule VI-A of your ITR.
Sanction window status: As the law currently stands, the Section 80EEB sanction window ended on 31 March 2023 and has not been extended. New EV loans do not qualify. Borrowers with loans sanctioned inside the window continue to claim the deduction for the full loan tenure under the old regime.
How to Claim Section 80EEB in Your ITR
Choose the old tax regime while filing. In Schedule VI-A (Chapter VI-A deductions), enter the interest paid during the year (capped at ₹1,50,000) against Section 80EEB. Keep the loan sanction letter, the annual interest certificate from the bank/NBFC, the vehicle invoice and the registration certificate as evidence — these are not uploaded with the return but must be produced if the return is picked up for verification. Before opting for the old regime solely for this deduction, compare your total tax under both regimes.
Frequently Asked Questions
Can I still claim Section 80EEB if my EV loan was sanctioned before 31 March 2023?
Yes. The eligibility test for Section 80EEB is the sanction date of the loan — it must have been sanctioned between 01 April 2019 and 31 March 2023. If your loan was sanctioned within this window, you continue to claim the deduction of up to ₹1.5 lakh every year on the interest you actually pay, for as long as EMIs are running. The closure of the sanction window only means new loans sanctioned after 31 March 2023 do not qualify — existing borrowers are unaffected and can claim for the entire remaining loan tenure, provided they file under the old tax regime.
Is Section 80EEB available under the new tax regime?
No. Section 80EEB is not available if you opt for the new tax regime under Section 115BAC. Like most Chapter VI-A deductions, it can be claimed only under the old tax regime. If your EV loan interest is substantial, compare both regimes before filing — the ₹1.5 lakh 80EEB deduction combined with 80C, 80D and HRA can sometimes make the old regime the better choice.
Does Section 80EEB apply to two-wheeler electric vehicles?
Yes. Section 80EEB covers loans taken to purchase any "electric vehicle" — defined as a vehicle powered exclusively by an electric motor whose traction energy is supplied exclusively by a traction battery installed in the vehicle, and which has an electric regenerative braking system. This includes electric two-wheelers (scooters, motorcycles) as well as electric cars. Hybrid vehicles do not qualify because they are not powered exclusively by an electric motor.
Is there a limit on the price of the electric vehicle for 80EEB?
No. Unlike Sections 80EE and 80EEA (which cap the property value), Section 80EEB imposes no condition on the cost of the electric vehicle or the loan amount. The only monetary limit is on the deduction itself — a maximum of ₹1,50,000 of interest per financial year. There is also no condition about possession or first-time ownership of a vehicle.
Can I claim 80EEB if I took the EV loan from my employer or a relative?
No. The loan must be taken from a "financial institution" — a banking company, a bank/institution referred to in Section 51 of the Banking Regulation Act, or a deposit-taking / systemically important non-deposit-taking NBFC. Loans from employers, friends, relatives or unregistered lenders do not qualify. Keep the interest certificate issued by the bank/NBFC as proof of the interest paid each year.
Can I claim Section 80EEB and business depreciation on the same electric vehicle?
You can claim both benefits on the same vehicle but never on the same rupee of interest. If the EV is used for business, you may claim depreciation on the vehicle cost as a business expense, and the loan interest either under Section 80EEB (up to ₹1.5 lakh) or as a business expense — not both for the same interest amount. A common approach is to claim up to ₹1.5 lakh of interest under 80EEB and any interest above that as a business expense, with the vehicle registered in the name of the owner or the business. Claiming the same interest twice will invite disallowance.
Can a HUF or a company claim Section 80EEB?
No. Section 80EEB is available only to individuals. HUFs, AOPs, partnership firms, LLPs and companies cannot claim it. If a business entity buys an electric vehicle, it can instead claim the loan interest and depreciation as business expenses under the normal computation of business income.
What documents do I need to claim the 80EEB deduction in my ITR?
Keep the loan sanction letter (showing the sanction date falls between 01-Apr-2019 and 31-Mar-2023), the interest certificate from the bank or NBFC showing interest paid during the financial year, the vehicle invoice and registration certificate showing it is an electric vehicle in your name. These are not uploaded with the ITR but must be produced if the return is selected for verification. Enter the interest amount (capped at ₹1,50,000) in the Section 80EEB field of Schedule VI-A while filing under the old regime.
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