Section 80EEB → Section 132
Deduction in respect of interest on loan taken for purchase of electric vehicle
Quick Answer
Section 80EEB of the Income Tax Act, 1961 (Deduction in respect of interest on loan taken for purchase of electric vehicle) corresponds to Section 132 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 80EEB
The starting point is Section 80EEB of the Income Tax Act, 1961 — deduction in respect of interest on loan taken for purchase of electric vehicle. Deduction up to Rs. 1.5 Lakhs for interest paid on EV loans sanctioned between April 2019 and March 2023.
From 1st April 2026, the same subject sits at Section 132 of the Income-tax Act, 2025 — retained and renumbered as Section 132 of the Income-tax Act, 2025. Sunset clause active. Benefit restricted to loans sanctioned before the expiration date.
For Section 80EEB, the practical impact is rated Low. Phasing out as a tax deduction.
Sec 80EEB
Provision Summary
Deduction up to Rs. 1.5 Lakhs for interest paid on EV loans sanctioned between April 2019 and March 2023.
Sec 132
Provision Summary
Sunset clause active. Benefit restricted to loans sanctioned before the expiration date.
Key Changes & Highlights
- Aligns with the broader policy shift towards direct EV subsidies rather than direct tax deductions.
Frequently Asked Questions
What is Section 80EEB of the Income Tax Act, 1961 about?
Section 80EEB of the Income Tax Act, 1961 covers deduction in respect of interest on loan taken for purchase of electric vehicle. Deduction up to Rs. 1.5 Lakhs for interest paid on EV loans sanctioned between April 2019 and March 2023.
Which section replaces Section 80EEB in the Income-tax Act, 2025?
Section 80EEB of the Income Tax Act, 1961 maps to Section 132 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Sunset clause active. Benefit restricted to loans sanctioned before the expiration date.
What is the impact of the change to Section 80EEB under the new tax code?
The transition impact for Section 80EEB is rated Low. Phasing out as a tax deduction.
What should I watch out for when Section 80EEB moves to the 2025 code?
Aligns with the broader policy shift towards direct EV subsidies rather than direct tax deductions. These points are specific to Section 80EEB (Deduction in respect of interest on loan taken for purchase of electric vehicle).
Disclaimer: This mapping of Section 80EEB (Deduction in respect of interest on loan taken for purchase of electric vehicle) to Section 132 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 80EEB is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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