Section 132
Section 132: deduction for interest on an electric vehicle loan
Section 132 is the Income-tax Act, 2025's version of the deduction long known as "80EEB" - for an individual who takes a loan from a financial institution to purchase an electric vehicle, within a specific loan-sanction window.
What Section 132 allows
An individual can deduct interest payable on a loan taken from a financial institution for the purpose of purchasing an electric vehicle, up to a maximum of ₹1,50,000 a year - but only if the loan was sanctioned between 1 April 2019 and 31 March 2023.
"Electric vehicle" means a vehicle powered exclusively by an electric motor, drawing traction energy exclusively from a traction battery installed in the vehicle, with electric regenerative braking.
Conditions
- The loan must be from a financial institution (a bank, or a non-banking financial company) - not a private or informal lender.
- Interest deducted under this section for a given amount cannot also be deducted under any other provision of the Act.
- Because the loan-sanction window (2019-23) has closed, this section is now mainly relevant to taxpayers still repaying a loan sanctioned in that period.
Frequently asked questions
Can I claim this deduction for an electric vehicle loan I'm taking now?
No - the loan must have been sanctioned between 1 April 2019 and 31 March 2023 to qualify under Section 132.
Is this the same as "80EEB"?
Yes - the same electric vehicle loan interest deduction, now numbered Section 132 under the Income-tax Act, 2025.
Does this cover a loan for an electric two-wheeler?
The section applies to any "electric vehicle" as defined - a vehicle powered exclusively by an electric motor with an installed traction battery - which is not limited to four-wheelers.
Want this applied to your actual filing, not just explained?
Check your Section 132 EV loan interest deduction with our tax teamLast updated 9 September 2026