Deduction on interest paid for loans taken to purchase electric vehicles. Available from AY 2020-21 onwards for both personal and business-use EVs.
Conditions
- Loan from a financial institution or NBFC
- Loan sanctioned between 01.04.2019 and 31.03.2023
- Must be a pure electric vehicle (battery-powered)
Benefits
- ₹1,50,000 deduction on interest paid
- Available for both personal and business use vehicles
- Encourages adoption of eco-friendly electric vehicles
This guide reflects FY 2025-26 (AY 2026-27) and is for general information. Tax rules and limits change, and how they apply depends on your circumstances. It is not professional tax advice; consult a qualified Chartered Accountant before acting.
