Section 123 of Income-tax Act, 2025

Beneficial for Haryana SAS Exam

(Earlier Sections 80C, 80CCC & 80CCD(1))

Deduction for Certain Investments and Payments

1. Introduction

   Section 123 Eligible Investments and Payments पर Deduction प्रदान करती है। इसका उद्देश्य Savings, Investment, Retirement Planning एवं Financial Security को बढ़ावा देना है।

   यह Income-tax Act, 1961 की Sections 80C, 80CCC एवं 80CCD(1) का स्थान लेती है।

   Eligible Investments की सूची Schedule XV में दी गई है।

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2. Effective Date

   Applicable From: 1 April 2026

   Applicable For: Tax Year 2026-27 onwards

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3. Tax Regime

   Deduction केवल Old Tax Regime में उपलब्ध है।

   Section 202 के अंतर्गत New Tax Regime चुनने पर यह Deduction उपलब्ध नहीं होगा।

   Exam Tip: Deduction Calculate करने से पहले Tax Regime अवश्य Verify करें।

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4. Schedule XV

   Section 123 केवल Deduction Provision है।

   Eligible Investments, Payments एवं संबंधित Conditions Schedule XV में दी गई हैं।

   याद रखें

   Section 123 → Deduction Provision

   Schedule XV → Eligible Investments & Payments List

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5. Eligible Investments and Payments (Schedule XV)

   (A) Provident Fund

   Employee's EPF Contribution

   Public Provident Fund (PPF)

   (B) Life Insurance

   Life Insurance Premium

   Postal Life Insurance

   Unit Linked Insurance Plan (ULIP)

   (C) National Savings Schemes

   National Savings Certificate (NSC)

   Accrued Interest on NSC (Eligible Cases)

   Tax Saver Fixed Deposit (5 Years)

   Senior Citizens Savings Scheme (SCSS)

   (D) Pension Related Investments

   Notified Pension Funds

   Deferred Annuity Plans

   Employee's Own NPS Contribution

   (E) Sukanya Samriddhi Yojana (SSY)

   Deposit in Eligible Girl Child Account

   (F) Housing Loan

   Principal Repayment for Purchase/Construction of Residential House

   Interest Not Eligible

   (G) Stamp Duty & Registration Charges

   Payment for Purchase of Residential House Property

   (H) Tuition Fee

   Full-time Education in India

   Maximum Two Children

   Only Tuition Fee Eligible

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6. Maximum Deduction

   Maximum Deduction = ₹1,50,000

   यह सभी Eligible Investments की Combined Limit है।

   प्रत्येक Investment पर अलग-अलग ₹1,50,000 का Deduction नहीं मिलेगा।

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7. Example

   Investment	Amount
   PPF	₹40,000
   LIC Premium	₹30,000
   Employee's EPF Contribution	₹50,000
   NSC	₹40,000
   Total Investment	₹1,60,000

   Deduction u/s 123 = ₹1,50,000

   Reason: Deduction Statutory Limit से अधिक नहीं हो सकता।

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8. Old Act vs New Act

   Income-tax Act, 1961	Income-tax Act, 2025
   Section 80C	Section 123 + Schedule XV
   Section 80CCC	Section 123 + Schedule XV
   Section 80CCD(1)	Section 123 + Schedule XV

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9. Common Mistakes

   ₹1,50,000 से अधिक Deduction Claim करना।

   New Tax Regime में Deduction Claim करना।

   Employer's EPF Contribution को Claim करना।

   Bus Fee, Books, Uniform, Transport Fee आदि Include करना।

   Prescribed Conditions पूरी किए बिना Life Insurance Premium Claim करना।

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10. SAS Examination Points

    Section 123 ने Sections 80C, 80CCC एवं 80CCD(1) को Replace किया है।

    Eligible Investments एवं Payments की सूची Schedule XV में दी गई है।

    Deduction केवल Old Tax Regime में उपलब्ध है।

    Maximum Deduction = ₹1,50,000 (Combined Limit).

    Applicable From Tax Year 2026-27.

    केवल Individual एवं HUF ही Deduction Claim कर सकते हैं।

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11. FAQ

    Q1. Section 123 ने किन Sections को Replace किया है?
    Ans. Sections 80C, 80CCC एवं 80CCD(1).

    Q2. Eligible Investments and Payments की सूची कहाँ दी गई है?
    Ans. Schedule XV.

    Q3. Section 123 के अंतर्गत Maximum Deduction कितनी है?
    Ans. ₹1,50,000 (Combined Limit).

    Q4. क्या New Tax Regime में Section 123 का Deduction उपलब्ध है?
    Ans. नहीं, यह केवल Old Tax Regime में उपलब्ध है।