Schedule 80EEB – Deduction in Respect of Interest Paid on Purchase of Electric Vehicle AY 2026-27

Schedule 80EEB – Deduction in Respect of Interest Paid on Purchase of Electric Vehicle AY 2026-27

‘Schedule 80EEB’ in the Income Tax Return is used to claim deduction under section 80EEB for interest paid on loans taken for the purchase of electric vehicles. This schedule applies to individual taxpayers and supports the government’s initiative to promote eco-friendly transportation. The assessee is required to furnish details such as the name of the lender (bank or financial institution), loan account number, date of loan sanction, total loan amount, outstanding loan balance at the end of the financial year, the vehicle registration number, and the total interest paid during the year eligible for deduction under section 80EEB.

Section 80EEB of the Income-tax Act, 1961.

Section 80EEB allows a deduction of up to Rs. 1,50,000 for interest paid on a loan taken from any financial institution for the purchase of an electric vehicle. This provision aims to promote a pollution-free India by reducing vehicular emissions. The loan must be sanctioned between 01-04-2019 and 31-03-2023 to qualify for this benefit.

This schedule applies to ITR-1 and ITR-4.