Under Section 80EEB of the Income Tax Act, individual taxpayers who took a loan to purchase an electric vehicle can claim a deduction of up to ₹1.5 lakh per year on the interest paid — but only under the old tax regime. It is important to note that this benefit applies specifically to loans sanctioned between April 1, 2019, and March 31, 2023, which means loans taken after that date are no longer eligible for this particular deduction.
If you financed your EV before that deadline, the benefit can be claimed every year until the loan is fully repaid. For businesses and fleet operators, electric vehicles qualify for accelerated depreciation of 40% — a meaningful tax break that reduces taxable income substantially in the first year of ownership.
This makes EV fleet adoption financially attractive for delivery companies, cab operators, and corporate transport teams looking to lower their tax liability while cutting fuel costs.
