Section 80C → Section 123
Deduction for LIC, PPF, EPF (Under Old Tax Regime)
Quick Answer
Section 80C of the Income Tax Act, 1961 (Deduction for LIC, PPF, EPF (Under Old Tax Regime)) corresponds to Section 123 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
Sec 80C
Provision Summary
Allows deduction up to Rs. 1.5 Lakhs for investments in PPF, EPF, LIC, ELSS, etc.
Sec 123
Provision Summary
Moved to Section 123. The Rs. 1,50,000 limit is retained as an aggregate cap, but it is ONLY available if the taxpayer actively opts out of the Default New Regime.
Key Changes & Highlights
- Section number changed to 123.
- Must file a specific declaration to opt-out of Section 115BAC to claim this.
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Frequently Asked Questions
What does Section 80C of the Income Tax Act 1961 deal with?
Section 80C (Deduction for LIC, PPF, EPF (Under Old Tax Regime)) Allows deduction up to Rs. 1.5 Lakhs for investments in PPF, EPF, LIC, ELSS, etc.
What is the new section number for Section 80C under the Direct Tax Code 2025?
Section 80C of the ITA 1961 maps to Section 123 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 80C under the new tax code?
Section 80C is marked as "Retained" with status "Modified". Impact: Critical - Requires active tax planning to claim.
What are the key changes to Section 80C under DTC 2025?
Section number changed to 123. Must file a specific declaration to opt-out of Section 115BAC to claim this.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
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