§ 123
Chapter VIII — Deductions To Be Made In Computing Total Income
An individual or a Hindu undivided family, shall be allowed a deduction
Income-tax Act, 2025
Business owners may be eligible for a tax deduction on certain pension scheme contributions. The deduction is limited to a maximum amount of ₹150,000. This applies to individuals and Hindu undivided families.
- The specific conditions and sums eligible for deduction are outlined in Schedule XV.
📜 Official text of the section +
123. An individual or a Hindu undivided family, shall be allowed a deduction
of the whole of the amount paid or deposited in the tax year, being the aggre -
gate of the sums enumerated in Schedule XV, as does not exceed ` 150000, while
computing the total income for that year, subject to the conditions specified in that
Schedule.
Deduction in respect of employer and assessee contribution to pension
scheme of Central Government.
Plain-language summary — not the official text. Refer to the bare Act and confirm with a professional for your specific case.
Related sections
§ 122Deductions to be made in computing total income§ 124Section 124§ 125Deduction in respect of contribution to Agnipath Scheme§ 126Government along with interest on both these contributions are held. Deduction in respect of health insurance premia§ 127Section 127§ 128Deduction in respect of medical treatment, etc