Section 80CCD → Section 124
Deduction in respect of contribution to National Pension System (NPS)
Quick Answer
Section 80CCD of the Income Tax Act, 1961 (Deduction in respect of contribution to National Pension System (NPS)) corresponds to Section 124 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
Sec 80CCD
Provision Summary
Deduction for employee/self contribution to NPS (under 80CCD(1) and (1B)) and employer's contribution (under 80CCD(2)).
Sec 124
Provision Summary
Retained. Employer's contribution to NPS (up to 10% or 14% of salary) remains highly promoted even in simplified tax regimes.
Key Changes & Highlights
- The extra Rs. 50,000 deduction is more prominently tracked to encourage retirement savings.
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Frequently Asked Questions
What does Section 80CCD of the Income Tax Act 1961 deal with?
Section 80CCD (Deduction in respect of contribution to National Pension System (NPS)) Deduction for employee/self contribution to NPS (under 80CCD(1) and (1B)) and employer's contribution (under 80CCD(2)).
What is the new section number for Section 80CCD under the Direct Tax Code 2025?
Section 80CCD of the ITA 1961 maps to Section 124 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 80CCD under the new tax code?
Section 80CCD is marked as "Retained" with status "Active". Impact: High - Primary vehicle for modern corporate retiral planning.
What are the key changes to Section 80CCD under DTC 2025?
The extra Rs. 50,000 deduction is more prominently tracked to encourage retirement savings.
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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