Section 132 - Deduction in respect of purchase of electric vehicle
An individual may deduct up to ₹1.5 lakh interest on a loan for purchase of an electric vehicle where the loan was sanctioned from 1 April 2019 to 31 March 2023.
Reviewed by CA Nikhil Gupta · Updated 9 October 2026
Current-law control
This page uses the consolidated Income-tax Act, 2025 as amended by the Finance Act, 2026. The Act and Income-tax Rules, 2026 operate from 1 April 2026. Earlier years and saved proceedings remain subject to the repeal-and-savings framework.
Primary statute: Income Tax Department consolidated Act | Rules: Notified Income-tax Rules, 2026
2-minute decode
An individual may deduct up to ₹1.5 lakh interest on a loan for purchase of an electric vehicle where the loan was sanctioned from 1 April 2019 to 31 March 2023.
Who should use this section
Individuals/HUFs or other persons falling within the eligibility wording of this personal-payment deduction; status and payment conditions must be checked for the tax year This applicability note is specific to section 132.
Old-law bridge
1961 Act section 80EEB
The bridge is navigational only. A 1961 Act case or rule is carried forward only after checking wording, transition provisions and the current 2025 Act text.
Professional alert
Exception / professional alert The benefit is for interest, not vehicle cost or principal, and the sanction window has closed.
Connected Income-tax Rules, 2026 and Forms
No provision-specific Rule/Form is independently mapped in this tranche. General return, procedure and evidence rules can still apply.
Worked application
An individual pays ₹1.20 lakh interest on a qualifying electric-vehicle loan sanctioned in February 2023. Subject to the definitions, the full ₹1.20 lakh can fall within the section.
Evidence / compliance checklist
- For section 132, retain proof of payment and the instrument/recipient document that establishes statutory eligibility.
- Match beneficiary, ownership/residency/status conditions to the text for the relevant tax year (section 132: Deduction in respect of purchase of electric vehicle).
- Preserve certificate/approval/registration details where the deduction depends on an approved institution or authority (section 132: Deduction in respect of purchase of electric vehicle).
- Keep a computation showing the statutory ceiling, qualifying base and any cash/payment-mode restriction (section 132: Deduction in respect of purchase of electric vehicle).
Common mistake
Claiming section 132 from a payment receipt alone without testing the statutory ceiling, recipient/instrument eligibility, payment mode and required certificate.
Recommended approach
For section 132, fix the governing tax year, identify the operative sub-section for “Deduction in respect of purchase of electric vehicle”, trace every amount to evidence, apply only verified Rule/Form links, and retain a computation that another reviewer can reproduce from the primary source.
Thresholds, periods and timing checkpoints
- on the 1st April, 2019 and ending on the 31st March, 2023.
- (3) The deduction under sub-section (1) shall not exceed ₹ 150000 and shall be
- allowed in computing the total income of the individual for the tax year beginning
- on the 1st April, 2019 and subsequent tax years.
- other provision of this Act for the same or any other tax year.
Judicial / interpretive bridge
No section-specific Supreme Court bridge is included for section 132 unless text-equivalence with the 2025 Act has been checked. Legacy cases should not be transplanted into section 132 merely because the subject is similar.
Related provisions
Current statutory text
Primary-source trail
FAQs
What does section 132 of the Income-tax Act, 2025 cover?
Section 132 covers deduction in respect of purchase of electric vehicle. The operative result depends on the exact statutory conditions shown on this page and applies from 1 April 2026, subject to transition/savings provisions.
Who should check section 132?
Individuals/HUFs or other persons falling within the eligibility wording of this personal-payment deduction; status and payment conditions must be checked for the tax year This applicability note is specific to section 132.
Are there specific Rules or Forms for section 132?
No provision-specific Rule/Form independently mapped in this tranche.