New Delhi, May 16 -- Deduction for loan used to purchase an electric vehicle is provided under Section 80EEB of the Income-Tax Act (ITA) for interest payment up to Rs.1.5 lakh in a financial year under the old tax regime.

Notably, this tax benefit was implemented by the Centre to encourage EV adoption in India, promote the sector among ordinary citizens, and bring around a shift for the auto industry.

Even if you do not purchase an EV, a self-employed or business owner taxpayer in India can report a car loan under Section 80D and claim it as a business expense to gain relief under both the old tax regime and new tax regime.

Notably, in order to claim this deduction, details of your car loan must be included in your returns, where inter...