Section 80CCC → Section 123
Deduction in respect of contribution to certain pension funds
Quick Answer
Section 80CCC of the Income Tax Act, 1961 (Deduction in respect of contribution to certain pension funds) corresponds to Section 123 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 80CCC
The starting point is Section 80CCC of the Income Tax Act, 1961 — deduction in respect of contribution to certain pension funds. Deduction for contribution to annuity plan of LIC or other insurer for receiving pension.
The new code maps this to Section 123: the provision is retained and renumbered as Section 123 of the Income-tax Act, 2025, applying from 1st April 2026. Merged fully into the new Section 123 limits. Maximum combined deduction remains capped.
On the ground, changes to Section 80CCC carry a Medium impact. Streamlines tax planning for retirees.
Sec 80CCC
Provision Summary
Deduction for contribution to annuity plan of LIC or other insurer for receiving pension.
Sec 123
Provision Summary
Merged fully into the new Section 123 limits. Maximum combined deduction remains capped.
Key Changes & Highlights
- Simplified. Now treated identical to standard life insurance within the main deduction pool.
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Frequently Asked Questions
What does Section 80CCC of the Income Tax Act 1961 deal with?
Section 80CCC of the Income Tax Act, 1961 covers deduction in respect of contribution to certain pension funds. Deduction for contribution to annuity plan of LIC or other insurer for receiving pension.
Where does Section 80CCC of the ITA 1961 go under the Income-tax Act, 2025?
Section 80CCC of the Income Tax Act, 1961 maps to Section 123 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Merged fully into the new Section 123 limits. Maximum combined deduction remains capped.
Why does the change to Section 80CCC matter for taxpayers?
The transition impact for Section 80CCC is rated Medium. Streamlines tax planning for retirees.
What are the key changes to Section 80CCC under the Income-tax Act, 2025?
Simplified. Now treated identical to standard life insurance within the main deduction pool. These points are specific to Section 80CCC (Deduction in respect of contribution to certain pension funds).
Disclaimer: This mapping of Section 80CCC (Deduction in respect of contribution to certain pension funds) to Section 123 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 80CCC is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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