Section 123Schedule XV - qualifying payments and claw-backs
The Schedule is reproduced in full because section 123 cannot be applied from the ₹1.5 lakh ceiling alone.
SCHEDULE XV
[See section 123]
DEDUCTION IN RESPECT OF LIFE INSURANCE PREMIA,
CONTRIBUTION TO PROVIDENT FUND, SUBSCRIPTION
TO CERTAIN EQUITY SHARES, ETC.
Sums qualifying as deduction.
1. For any tax year, the following amounts shall qualify as deduction for the purpose
of section 123—
(a) premium paid for a life insurance policy––
(i) in the case of an individual, on life of such individual, spouse of
the individual and any child of the individual;
(ii) in the case of a Hindu undivided family, on life of any member of
the Hindu undivided family,
subject to paragraph 2;
(b) sum paid under a deferred annuity contract other than the annuity plan
referred to in clause (l) on life of the individual, spouse of the individual
and any child of the individual, and such contract does not contain an
option to receive cash payment in lieu of the annuity;
(c) sum deducted from salary payable by or on behalf of the Government
to any individual for securing deferred annuity or making provision for
his spouse or children, to the extent of 20% of salary;
52. Inserted by the Finance Act, 2026, w.e.f. 1-4-2026.
(d) contribution by an individual to any provident fund to which the
Provident Funds Act, 1925 (19 of 1925) applies;
(e) contribution to an account with any provident fund, set up and notified
by the Central Government, in the name of,––
(i) in the case of an individual, such individual, spouse of the individual
and any child of the individual;
(ii) in the case of a Hindu undivided family, any member thereof;
(f) contribution by an employee to a recognised provident fund;
(g) contribution by an employee to an approved superannuation fund;
(h) subscription to any security or deposit scheme notified by the Central
Government in the name of an individual or any girl child of that individual, or any girl child for whom such person is the legal guardian, if
the scheme so specifies;
(i) subscription to savings certificate as mentioned in section 3(k) of the
Government Savings Banks Act, 1873 (5 of 1873), as may be notified by
the Central Government;
(j) contribution for participation in Unit-linked Insurance Plan, 1971
specified in Schedule II of the Unit Trust of India (Transfer of
Undertaking and Repeal) Act, 2002 (58 of 2002),––
(i) in the case of an individual, in the name of such individual, spouse
of the individual and any child of the individual;
(ii) in the case of a Hindu undivided family, in the name of any member
thereof;
(k) contribution for participation in unit-linked insurance plan of Life
Insurance Corporation Mutual Fund, referred to in Schedule VII (Table:
Sl. No. 20 or 21), as may be notified by the Central Government,—
(i) in the case of an individual, in the name of such individual, spouse
of the individual and any child of the individual;
(ii) in the case of a Hindu undivided family, in the name of any member
thereof;
(l) sum paid to effect or to keep in force a contract for annuity plan of the
Life Insurance Corporation or any other insurer notified by the Central
Government;
(m) subscription to any units of any Mutual Fund referred to in serial number
20 or 21 of the Table in Schedule VII or from the Administrator or the
specified company under any plan formulated in accordance with such
scheme notified by the Central Government;
(n) contribution by an individual to any pension fund set up by––
(i) any Mutual Fund referred to in Schedule VII (Table: Sl. No. 20 or
21); or
(ii) the Administrator; or
(iii) the specified company,
as may be notified by the Central Government;
(o) subscription to a deposit scheme or contribution to a pension fund, set
up by the National Housing Bank established under section 3 of the
National Housing Bank Act, 1987 (53 of 1987), as may be notified by the
Central Government;
(p) subscription to any deposit schemes of––
(i) a public sector company engaged in providing long-term finance
for construction or purchase of houses in India for residential
purposes; or
(ii) an authority constituted in India by any law, for the purpose of
dealing with and satisfying the need for housing accommodation
or for the purpose of planning, development or improvement of
cities, towns and villages, or for both,
as may be notified by the Central Government;
(q) tuition fees (excluding any development fees or donation or payment of
similar nature) paid by an individual to any University, college, school
or other educational institution situated in India (at the time of admission or thereafter), for full time education of any two children of such
individual;
(r) payment made for purchase or construction of a residential house property the income from which is chargeable to tax under the head “Income
from house property” (or which would, if it had not been used for the
own residence of the assessee, have been chargeable to tax under that
head), subject to satisfaction of conditions laid down in paragraph 3;
(s) term deposit for a fixed period of not less than five years with a scheduled bank, and which is as per such scheme framed and notified by the
Central Government;
(t) subscription to bonds issued by the National Bank for Agriculture and
Rural Development, as may be notified by the Central Government;
(u) deposit in an account under the Senior Citizen Savings Scheme Rules,
2004;
(v) five years term deposit in an account under the Post Office Time Deposit
Rules, 1981;
(w) contribution by an employee of the Central Government to an additional
account referred to in section 20(3) of the Pension Fund Regulatory and
Development Authority Act, 2013 (23 of 2013) of the pension scheme
notified by the Central Government, as referred to in section 124—
(a) for a fixed period of not less than three years; and
(b) which is as per the scheme as may be notified by the Central
Government for the purposes of this clause;
(x) contribution made from income chargeable to tax to effect or keep in
force a contract for any annuity plan of Life Insurance Corporation of
India or any other insurer for receiving pension from the fund referred
to in Schedule VII (Table: Sl. No. 3);
(y) contribution made by an individual to a pension scheme notified by the
Central Government, to the extent of––
(i) 10% of salary, including dearness allowance, if the terms of employment so provide, but excluding all other allowances and perquisites, during the tax year in the case of an employee of the Central
Government or any other employer; or
(ii) 20% of gross total income during the tax year in the case of any
other individual;
(z) subscription to––
(i) equity shares or debentures forming part of any eligible issue of
capital approved by the Board on an application made by a public
company or as subscription to any eligible issue of capital by any
public financial institution in the prescribed form;
(ii) any units of any mutual fund referred to in Schedule VII (Table: Sl.
No. 20 or 21) and approved by the Board on an application made
by such mutual fund in the prescribed form and if the amount of
subscription to such units is subscribed only in the eligible issue
of capital of any company.
Payment on insurance policy.
2. (1) The deductions shall apply only to so much of any premium or other payment
made on an insurance policy, other than a contract for a deferred annuity,––
(a) as is up to 20% of the actual capital sum assured, in respect of a policy
issued on or before the 31st March, 2012;
(b) as is up to 10% of the actual capital sum assured, in respect of a policy
issued on or after the 1st April, 2012;
(c) as is up to 15% of the actual capital sum assured, if the policy is issued
on or after the 1st April, 2013 and where such policy covers the life of,––
(i) a person with a disability or severe disability as referred to in section
154; or
(ii) a person suffering from a disease or ailment specified in the rules
made under section 128.
(2) In this paragraph, “actual capital sum assured” shall mean the minimum amount
assured under the policy on happening of the insured event at any time during the
term of the policy, not taking into account—
(a) the value of any premiums agreed to be returned; or
(b) any benefit by way of bonus or otherwise over and above the sum actually assured, which is to be or may be received under the policy by any
person.
Payments made for purchase or construction of residential house property.
3. The deduction in respect of amount spent for purchase or construction of a
residential house property as provided in paragraph 1(r) shall––
(a) include payments that are made towards or by way of—
(i) any instalment or part payment of the amount due under any selffinancing or other scheme of any development authority, housing
board or other authority engaged in the construction and sale of
house property on ownership basis; or
(ii) any instalment or part payment of the amount due to any company
or co-operative society of which the assessee is a shareholder or
member towards the cost of the house property allotted to him; or
(iii) repayment of the amount borrowed by the assessee from—
(A) the Central Government or any State Government; or
(B) any bank, including a co-operative bank; or
(C) the Life Insurance Corporation; or
(D) the National Housing Bank; or
(E) any public company formed and registered in India with the
main object of carrying on the business of providing longterm finance for construction or purchase of houses in India
for residential purposes which is eligible for deduction under
section 32(e); or
(F) any company in which the public are substantially interested
or any co-operative society, where such company or co-operative society is engaged in the business of financing the
construction of houses; or
(G) the employer where such employer is an authority or a board
or a corporation or any other body established or constituted
under a Central Act or State Act; or
(H) the employer of the assessee where such employer is a public
company or a public sector company or a University established by law or a college affiliated to such University or a
local authority or a co-operative society; or
(iv) stamp duty, registration fee and other expenses for the purpose of
transfer of such house property to the assessee;
(b) not include any payment towards or by way of—
(i) the admission fee, cost of share and initial deposit which a shareholder of a company or a member of a co-operative society has to
pay for becoming such shareholder or member; or
(ii) the cost of any addition or alteration to, or renovation or repair
of, the house property, which is carried out after the issue of the
completion certificate in respect of the house property by the authority competent to issue it, or after the house property or any
part thereof has either been occupied by the assessee or any other
person on his behalf, or been let out; or
(iii) any expenditure in respect of which deduction is allowable under
section 22.
Disallowance of and taxation of deduction already allowed.
4. The deductions in the nature of payments specified in column B of the Table below
shall not be allowable in the tax year in which the conditions specified in column C
of the said Table are fulfilled, and the aggregate amount of the deductions allowed
thus far in the preceding tax year or tax years shall be deemed to be the income of
the assessee and liable to tax in such tax year:
TABLE
Sl. Nature of payment Conditions for disallowance of the deduction
No. in respect of payment provided in column B
A B C
1. Premium paid for a life in- Where the assessee terminates his contract of
surance policy. insurance, by notice to that effect or where
the contract ceases to be in force by reason of
failure to pay any premium, by not reviving
contract of insurance,—
(a) in case of any single premium policy,
within two years after the date of commencement of insurance; or
(b) in any other case, before premiums have
been paid for two years.
2. (a) Contribution for par- Where the assessee terminates his participaticipation in the Unit- tion in such plan, by notice to that effect or
Linked Insurance Plan, where he ceases to participate by reason of
1971; failure to pay any contribution, by not reviv-
(b) contribution for par- ing his participation, before contributions in
ticipation in the unit- respect of such participation have been paid
linked insurance plan for five years.
of Life Insurance Corporation Mutual Fund.
3. Certain payments made for Where the assessee––
purchase or construction of (a) transfers the house property before the
residential house property. expiry of five years from the end of the
tax year in which possession of such
property is obtained by him; or
(b) receives back, whether by way of refund
or otherwise, any sum specified in that
clause.
4. Certain payments for sub- (a) Where the assessee sells or otherwise
scription to any equity shares transfers to any person at any time
or debentures forming part within a period of three years from the
of any eligible issue of capital date of their acquisition; and
Sl. Nature of payment Conditions for disallowance of the deduction
No. in respect of payment provided in column B
A B C
by a public company or by. (b) such shares or debentures shall be treatany public financial institu- ed as having acquired by the person on
tion and approved by Board the date on which his name is entered
in relation to those shares or debentures
in the register of members or of debenture-holders, as the case may be, of the
public company.
Taxation of receipts where deduction already allowed
5. Where deductions in the nature of payments specified in column B of the Table
below have been allowed, and the conditions specified in column C of the said Table
are fulfilled in any tax year, the amounts received shall be taxed in such tax year in
the manner as provided in column D of the said Table:
TABLE
Sl. Nature of payment Condition for Manner and amount of
No. taxation taxation in the tax year in
which condition in column C
is fulfilled
A B C D
1. (a) Deposit in an ac- If any amount, (a) The amount so withdrawn
count under the including interest shall be deemed to be the
Senior Citizen accrued, in respect income of the assessee of
Savings Scheme of the account pro- the tax year in which the
Rules, 2004; vided in column amount is withdrawn and
(b) five year term B, is withdrawn shall be liable to tax in the
deposit in an ac- by the assessee, said year;
count under the before the expiry (b) the amount liable to tax, as
Post Office Time of the period of referred in clause (a), shall
Deposit Rules, five years from the not include the following
1981. date of its deposit. amounts:—
(i) any amount of interest, which has
been included in the
total income of the
assessee of the tax
year or years preceding such tax year;
and (ii) a n y
amount received by
the nominee or legal
heir of the assessee, on the death of
Sl. Nature of payment Condition for Manner and amount of
No. taxation taxation in the tax year in
which condition in column C
is fulfilled
A B C D
such assessee, other than
interest, if any, accrued
thereon, which was not included in the total income
of the assessee for the tax
year or years preceding
such tax year.
2. Contribution to effect Where any amount An amount equal to the whole
or keep in force a con- standing to the of the amount referred to in
tract for any annuity credit of the asses- column C (a) or (b) shall be
plan of Life Insurance see in the pension deemed to be the income of
Corporation of India or fund, in respect the assessee or his nominee,
any other insurer for of which a de- in the tax year in which such
receiving pension from duction has been withdrawal is made or, pension
the fund referred to in allowed, together is received, and shall be liable
Schedule VII (Table: with the interest to tax in the said year.
Sl. No. 3). or bonus accrued
or credited to the
assessee account,
if any, is received
by the assessee
or his nominee,—
(a) on account
of the surrender of the
annuity plan
whether in
whole or in
part, in any
tax year; or
(b) a s p e n s -
ion received
from the annuity plan.
3. Contribution by an Where any amount The whole of the amount reindividual to a pension standing to the ferred to in column C (a) or
scheme notified by the credit of the asses- (b) shall be deemed to be the
Central Government. see in the pension income of the assessee or his
scheme, in respect nominee, in the tax year in
Sl. Nature of payment Condition for Manner and amount of
No. taxation taxation in the tax year in
which condition in column C
is fulfilled
A B C D
of which a de- which such amount is received,
duction has been and shall be liable to tax in the
allowed, together said year.
with the amount
accrued thereon,
if any, is received
by the assessee or
his nominee, in
whole or in part,
in any tax year, and
if such amount is
not used for purchasing an annuity
plan in the same
year—
(a) on account
of closure
or his opting out of
the pension
scheme (except when
received by
the nominee on the
death of the
assessee); or
(b) a s p e n s -
ion received
from the annuity plan
purchased
or taken on
such closure
or opting
out.
Interpretation.
6. For the purposes of this Schedule,––
(a) “Administrator” means the Administrator as referred to in section 2(a)
of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002
(58 of 2002);
(b) “contribution” to any fund shall not include any sums in repayment of
loan;
(c) “insurance” shall include,—
(i) a policy of insurance on the life of an individual or the spouse or the
child of such individual or a member of a Hindu undivided family
securing the payment of specified sum on the stipulated date of
maturity, if such person is alive on such date irrespective that the
policy of insurance provides only for the return of premiums paid
(with or without any interest thereon) in the event of such person
dying before the said stipulated date;
(ii) a policy of insurance effected by an individual or a member of a
Hindu undivided family for the benefit of a minor with the object
of enabling the minor, after he has attained majority to secure
insurance on his own life by adopting the policy and on his being
alive on a date (after such adoption) specified in the policy in this
behalf;
(d) “Life Insurance Corporation” means the Life Insurance Corporation of
India established under the Life Insurance Corporation Act, 1956 (31 of
1956);
(e) “public company” shall have the same meaning as assigned to it in section
2(71) of the Companies Act, 2013 (18 of 2013);
(f) “security” means a Government security as defined in section 2(f) of the
Government Securities Act, 2006 (38 of 2006);
(g) “specified company” means a company as referred to in section 2(h) of
the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002
(58 of 2002);
(h) “transfer” shall be deemed to include also the transactions referred to in
section 269UA(f) of the Income-tax Act, 1961 (43 of 1961);
(i) “eligible issue of capital” means an issue made by a public company
formed and registered in India or a public financial institution and the
entire proceeds of the issue are utilised wholly and exclusively for the
purposes of any business referred to in section 80-IA(4) of the Income-tax
Act, 1961 (43 of 1961);
(j) “public financial institution” shall have the same meaning as assigned
to it in section 2(72) of the Companies Act, 2013 (18 of 2013).Schedule XV controlIdentify the exact clause, eligible beneficiary, notified instrument, payment date and lock-in. Then apply paragraph 2 insurance limits, paragraph 3 housing rules, paragraph 4 claw-backs and paragraph 5 taxation of receipts.
Common audit errorCombining marketing brochures, bank labels or accounting narration with section 123 without proving the matching Schedule clause.
Statutory text
124. (1) Where in the case of an assessee, being an individual employed by any
employer, if the employer makes any contribution in his account under a
pension scheme notified by the Central Government, the assessee shall be allowed
a deduction in the computation of his total income, of the whole of the amount
contributed by such employer as does not exceed—
(a) 14%, where such contribution is made by the employer being the Central
Government or the State Government; and
(b) 10%, where such contribution is made by an employer other than an
employer referred to in clause (a),
of his salary in the tax year.
(2) Where the total income of the assessee is chargeable to tax under section 202(1),
the provisions of sub-section (1) shall have effect as if for “10%” referred to in clause
(b) of that sub-section, “14%” had been substituted.
(3) An assessee referred to in sub-section (1), or any other assessee, being an individual, shall be allowed a deduction not exceeding ₹ 50000, in computation of his
total income of the whole of the amount paid or deposited in the tax year by such
individual in his account under a pension scheme notified or as may be notified by
the Central Government.
(4) The deduction under sub-section (3) shall also be allowed where any payment
or deposit is made to the account of a minor under the said pension scheme, by
the assessee, being the parent or guardian of such minor, subject to the condition
that the aggregate amount of deduction under sub-section (3) and this sub-section
shall not exceed ₹ 50000.
(5) No deduction under sub-sections (3) and (4) shall be allowed in respect of the
amount on which a deduction has been claimed and allowed under section 123.
(6) Any amount standing to the credit of the assessee or a minor, in his account or
the account of a minor, as the case may be, referred to in sub-sections (1), (3) and
(4) and paragraph 1(y) of Schedule XV, in respect of which a deduction has been
allowed together with the amount accrued thereon, received by the assessee or his
nominee, in whole or in part, in any tax year,—
(a) on account of closure or his opting out of the pension scheme referred
to in sub-sections (1) and (3); or
(b) as pension received from the annuity plan purchased or taken on such
closure or opting out,
the whole of the amount referred to in clause (a) or (b) shall be deemed to be the
income of the individual or his nominee, in the tax year in which such amount is
received, and shall accordingly be charged to tax as income of that tax year.
(7) The amount received by the nominee, on the death of the assessee, under the
circumstances referred to in sub-section (6)(a), shall not be deemed to be the
income of the nominee.
(8) The amount received by a person, being the parent or guardian or nominee of a
minor on account of closure of the pension scheme, due to the death of the minor,
referred to in sub-section (4), shall not be deemed to be the income of such person.
(9) For the purposes of this section, the assessee shall not be deemed to have received
any amount in the tax year, if such amount is used for purchasing an annuity plan
in the same tax year.
(10) Where any amount paid or deposited by the assessee has been allowed as a
deduction under sub-section (3), no deduction with reference to such amount shall
be allowed under section 123 for that tax year.
(11) Any amount standing to the credit of the assessee, being a subscriber to Unified Pension Scheme, in his account referred to in sub-sections (1) and (3), and
paragraph 1(y) of Schedule XV, in respect of which a deduction has been allowed
together with the amount accrued thereon, received by the assessee or his nominee,
in whole or in part, in any tax year on account of his superannuation or voluntary
retirement or retirement under Fundamental Rules 56(j) (which is not treated as
penalty under the Central Civil Services (Classification, Control and Appeal) Rules,
1965), the whole of the amount shall be deemed to be the income of the assessee or
his nominee, as the case may be, in the tax year in which such amount is received,
and shall accordingly be charged to tax as income of that tax year.
(12) For the purposes of sub-section (11), the assessee shall be deemed not to have
received any amount in the tax year if such amount is transferred to pool corpus
from individual corpus on account of his superannuation or voluntary retirement
or retirement under Fundamental Rules 56(j) (which is not treated as penalty under
the Central Civil Services (Classification, Control and Appeal) Rules, 1965), as may
be applicable.
(13) For the purposes of this section,—
(a) “pool corpus” and “individual corpus” shall have the same meaning as
in Notification F. No. FX-1/3/2024-PR of the Department of Financial
Services, dated the 24th January, 2025.
(b) “salary” includes dearness allowance, if the terms of employment so
provide, but excludes all other allowances and perquisites.In simple languageThe section covers employer pension-scheme contributions and an additional individual contribution deduction. Government-employer contributions are capped at 14% of salary; other employers are generally 10%, but the section 202 default regime substitutes 14%. A separate ₹50,000 deduction applies to specified individual contributions, including permitted minor accounts, without double counting under section 123.
Practical exampleA private-sector employee has qualifying salary of ₹12 lakh and employer NPS contribution of ₹1.68 lakh. Under the default regime the 14% ceiling is ₹1.68 lakh; under the regular regime the general 10% ceiling would be ₹1.20 lakh. The actual statutory regime and account conditions must be checked.
Exception / professional alertWithdrawals, closure, annuity and UPS payments have specific tax rules. Employer contribution, own contribution and section 123 amounts must be tracked separately.
Statutory text
127. (1) An assessee being an individual or a Hindu undivided family, who is a
resident in India, shall be allowed a deduction up to ₹ 75000 from his gross
total income of a tax year, subject to the provisions of this section, if during that
year he has—
(a) incurred expenditure for the medical treatment (including nursing),
training and rehabilitation of a dependant, being a person with disability;
or
(b) paid or deposited any amount under a scheme framed by the Life
Insurance Corporation or any other insurer or the Administrator, or the
specified company, for the maintenance of a dependant, being a person
with disability, subject to the conditions specified in sub-section (2) and
approved by the Board in this behalf.
(2) The deduction under sub-section (1)(b) shall be allowed only if the following
conditions are fulfilled:—
(a) the scheme referred to in sub-section (1)(b) provides for payment of an
annuity or lump sum amount for the benefit of a dependant, being a
person with disability—
(i) on the death of the individual or the member of the Hindu undivided
family, in whose name the scheme was subscribed; or
(ii) on attaining the age of sixty years or more by such individual or
the member of the Hindu undivided family, and the payment or
deposit to such scheme has been discontinued;
(b) the assessee nominates the dependant, being a person with disability or
any other person or a trust to receive the payments on behalf of and for
the benefit of such dependant.
(3) If the dependant as referred to in sub-section (1) is a person with severe disability,
the amount of deduction as referred to in sub-section (1) shall be substituted with
“₹ 125000” for “₹ 75000”.
(4) In the event of death of the dependant, being a person with disability, before the
individual or the member of the Hindu undivided family mentioned in sub-section
(2), the amount paid or deposited under sub-section (1)(b) shall be deemed to be the
income of the assessee of the tax year in which it is received and shall accordingly
be chargeable to tax.
(5) The provisions of sub-section (4) shall not apply to the amount received by the
dependant, being a person with disability, before his death, as an annuity or lump
sum by application of the condition referred to in sub-section (2)(a)(ii).
(6) The assessee claiming deduction under this section, shall furnish a copy of the
medical certificate issued by the medical authority in such form and manner as
may be prescribed, along with the return of income under section 263 for the tax
year in which the deduction is claimed.
(7) If the certificate referred to in sub-section (6), specifies that the condition of
disability requires reassessment of its extent after a period stipulated in it, the
deduction under this section shall not be allowed for any tax year succeeding the tax
year in which the said certificate expires, unless a new certificate is obtained from
the medical authority in such form and manner as may be prescribed, and a copy
thereof is submitted along with the return of income under section 263.
(8) The dependant mentioned in this section shall not include a person who has
claimed deduction under section 154 in computing his total income for the tax year.
(9) For the purposes of this section,—
(a) “Administrator” means the Administrator as referred to in section 2(a)
of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002
(58 of 2002);
(b) “dependant” means—
(i) in the case of an individual, the spouse, children, parents, brothers
and sisters of the individual or any of them;
(ii) in the case of a Hindu undivided family, a member of the Hindu
undivided family,
dependant wholly or mainly on such individual or Hindu undivided
family for his support and maintenance;
(c) “disability” shall have the same meaning as assigned to it in section
2(i) of the Persons with Disabilities (Equal Opportunities, Protection
of Rights and Full Participation) Act, 1995 (1 of 1996) and includes
“autism”, “cerebral palsy” and “multiple disability” respectively referred
to in section 2(a), (c) and (h) of the National Trust for Welfare of Persons
with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities
Act, 1999 (44 of 1999);
(d) “Life Insurance Corporation” means the Life Insurance Corporation of
India established under the Life Insurance Corporation Act, 1956 (31 of
1956);
(e) “medical authority” means the medical authority as referred to in section
2(p) of the Persons with Disabilities (Equal Opportunities, Protection of
Rights and Full Participation) Act, 1995 (1 of 1996) or such other medical
authority as may, by notification, be specified by the Central Government
for certifying “autism”, “cerebral palsy”, “multiple disabilities”, “person
with disability” and “severe disability” respectively referred to in section
2(a), (c), (h), (j) and (o) of the National Trust for Welfare of Persons with
Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act,
1999 (44 of 1999);
(f) “person with disability” means a person as referred to in section 2(t)
of the Persons with Disabilities (Equal Opportunities, Protection of
Rights and Full Participation) Act, 1995 (1 of 1996) or section 2(j) of the
National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental
Retardation and Multiple Disabilities Act, 1999 (44 of 1999);
(g) “person with severe disability” means—
(i) a person with 80% or more of one or more disabilities, as referred
to in section 56(4) of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995
(1 of 1996); or
(ii) a person with severe disability referred to in section 2(o) of the
National Trust for Welfare of Persons with Autism, Cerebral
Palsy, Mental Retardation and Multiple Disabilities Act, 1999
(44 of 1999);
(h) “specified company” means a company as referred to section 2(h) of the
Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58
of 2002).In simple languageA resident individual or HUF supporting a dependant with disability receives a fixed deduction: ₹75,000, increased to ₹1.25 lakh for severe disability. It can arise from qualifying expenditure or an approved maintenance scheme and does not depend on proving equal actual expenditure.
Practical exampleA resident individual spends ₹52,000 on training and rehabilitation of a dependant certified with disability. The deduction is the fixed statutory amount of ₹75,000, subject to certificate and dependency conditions.
Exception / professional alertA repayment or benefit from an approved scheme can trigger taxation. Dependant, disability, severe disability and medical-authority definitions are statutory.
Statutory text
140. (1) Where the gross total income of an assessee, being an eligible start-up,
includes any profits and gains derived from eligible business, there shall, as
per and subject to the provisions of this section, be allowed, in computing the total
income of the assessee, a deduction of an amount equal to 100% of the profits and
gains derived from such business for three consecutive tax years.
(2) The deduction specified in sub-section (1) may, at the option of the assessee, be
claimed by him for any three consecutive tax years out of ten years beginning from
the year in which the eligible start-up is incorporated.
(3) This section applies to a start-up which fulfils the following conditions:—
(a) it is not formed by splitting up, or the reconstruction, of a business
already in existence;
(b) it is not formed by the transfer to a new business of machinery or plant
previously used for any purpose.
(4) Where the business of any undertaking carried on in India is discontinued in
any tax year by reason of extensive damage to, or destruction of, any building,
machinery, plant or furniture owned by the assessee and used for the purposes of
such business as a direct result of—
(a) flood, typhoon, hurricane, cyclone, earthquake or other convulsion of
nature; or
(b) riot or civil disturbance; or
(c) accidental fire or explosion; or
(d) action by an enemy or action taken in combating an enemy (whether
with or without a declaration of war),
and thereafter, at any time before the expiry of three years from the end of such tax
year, the business of such undertaking is re-established, reconstructed or revived by
the assessee, the condition referred to in sub-section (3)(a) shall not apply to such
undertaking which is so re-established, reconstructed or revived.
(5) For the purposes of sub-section (3)(b), any machinery or plant which was
used outside India by any person other than the assessee shall not be regarded as
machinery or plant previously used for any purpose, if all the following conditions
are fulfilled:—
(a) such machinery or plant was not, at any time previous to the date of the
installation by the assessee, used in India;
(b) such machinery or plant is imported into India; and
(c) no deduction on account of depreciation in respect of such machinery
or plant has been allowed or is allowable under the provisions of this
Act in computing the total income of any person for any period prior to
the date of the installation of the machinery or plant by the assessee.
(6) Where in the case of a start-up, any machinery or plant or any part thereof previously used for any purpose is transferred to a new business and the total value of
the machinery or plant or part so transferred does not exceed 20% of the total value
of the machinery or plant used in the business, then, for the purposes of sub-section
(3)(b), the condition specified therein shall be deemed to have been complied with.
(7) Irrespective of anything contained in any other provision of this Act, the profits
and gains of an eligible business to which the provisions of sub-section (1) apply
shall, for the purposes of determining the quantum of deduction under that sub-section for the tax year immediately succeeding the initial tax year or any subsequent
tax year, be computed as if such eligible business was the only source of income of
the assessee during the initial tax year and to every subsequent tax year up to and
including the tax year for which the determination is to be made.
(8) The deduction under sub-section (1) from profits and gains derived from an
eligible business shall not be admissible unless the accounts of the eligible business for the tax year for which the deduction is claimed have been audited by an
accountant, before the specified date referred to in section 63 and the assessee
furnishes by that date the report of such audit in the prescribed form duly signed
and verified by such accountant.
(9) In a case where, any goods or services held—
(i) for the purposes of the eligible business are transferred to any other
business carried on by the assessee; or
(ii) for the purposes of any other business carried on by the assessee are
transferred to the eligible business,
and, in either case, the consideration, if any, for such transfer as recorded in
the accounts of the eligible business does not correspond to the market value of
such goods or services as on the date of the transfer, then, for the purposes of the
deduction under this section, the profits and gains of such eligible business shall
be computed as if the transfer, in either case, had been made at the market value
of such goods or services as on that date.
(10) For the purposes of sub-section (9), where, in the opinion of the Assessing Officer, the computation of the profits and gains of the eligible business in the manner
hereinbefore specified presents exceptional difficulties, the Assessing Officer may
compute such profits and gains on such reasonable basis as he may deem fit.
(11) For the purposes of sub-section (9), “market value”, in relation to any goods
or services, means—
(i) the price that such goods or services would ordinarily fetch in the open
market; or
(ii) the arm’s length price as defined in section 173(a), where the transfer of
such goods or services is a specified domestic transaction referred to in
section 164.
(12) Where any amount of profits and gains of an undertaking or of an enterprise
in the case of an assessee is claimed and allowed under this section for any tax year,
deduction to the extent of such profits and gains shall not be allowed under any
other provisions of Part C of this Chapter and shall in no case exceed the profits
and gains of such eligible business of undertaking or enterprise, as the case may be.
(13) Where it appears to the Assessing Officer that owing to the close connection
between the assessee carrying on the eligible business to which this section applies
and any other person, or for any other reason, the course of business between them
is so arranged that the business transacted between them produces to the assessee
more than the ordinary profits which might be expected to arise in such eligible
business, the Assessing Officer shall, in computing the profits and gains of such
eligible business for the purposes of the deduction under this section, take the
amount of profits as may be reasonably deemed to have been derived therefrom.
(14) Where the arrangement as mentioned in sub-section (13) involves a specified
domestic transaction referred to in section 164, the amount of profits from such
transaction shall be determined having regard to arm’s length price as defined in
section 173(a).
(15) The Central Government may, after making such inquiry as it may think fit,
direct, by notification, that the exemption conferred by this section shall not apply
to any class of industrial undertaking or enterprise with effect from such date as it
may specify in the notification.
(16) For the purposes of this section,—
(a) “eligible business” means a business carried out by an eligible start-up
engaged in innovation, development or improvement of products or
processes or services or a scalable business model with a high potential
of employment generation or wealth creation;
(b) “eligible start-up” means a company or a limited liability partnership
engaged in eligible business which fulfils the following conditions:—
(i) it is incorporated on or after the 1st April, 2016 but before the 1st
April, 2030;
(ii) the total turnover of its business does not exceed 12[three] hundred
crore rupees in the tax year relevant to the tax year for which deduction under sub-section (1) is claimed; and
(iii) it holds a certificate of eligible business from the Inter-Ministerial
Board of Certification as may be notified by the Central Government;
(c) “limited liability partnership” means a partnership referred to in
section 2(1)(n) of the Limited Liability Partnership Act, 2008 (6 of 2009).
Deduction in respect of profits and gains from certain industrial under-takings.In simple languageAn eligible start-up can claim 100% of eligible business profits for three consecutive tax years chosen out of ten years from incorporation, subject to incorporation date, certification, turnover and business-formation conditions.
Practical exampleA certified eligible start-up incorporated in 2022 chooses tax years 2026-27 to 2028-29 as its three consecutive claim years within the statutory ten-year window.
Exception / professional alertFinance Act, 2026 raised the turnover wording to ₹300 crore in the operative text. Certification and non-reconstruction conditions remain central; Rule 66/Form 32 applies.
Statutory text
147. (1) Where the following assessee has any income of the nature referred to
in sub-section (3), there shall be allowed a deduction equal to 100% of such
income:—
(a) a scheduled bank, or a bank incorporated under the laws of a country
outside India, and having an Offshore Banking Unit in a Special Economic
Zone; or
(b) a unit of an International Financial Services Centre.
[(2) Irrespective of anything contained in section 80LA of the Income-tax Act, 1961
13
(43 of 1961), the deduction shall be allowed,—
(a) for an entity mentioned in sub-section (1)(a),—
(i) for twenty consecutive tax years beginning from the relevant tax year;
and
(ii) in a case, where the tenth year, out of the period of ten consecutive
years of deduction allowed under section 80LA(1) of the said Act has
ended on the 31st March, 2025, for further ten consecutive years from
13. Substituted by the Finance Act, 2026, w.e.f. 1-4-2026. Prior to its substitution, sub-section
(2) read as under :
“(2) The deduction shall be allowed—
(a) for ten consecutive tax years beginning from the relevant tax year in the case of an
entity mentioned in sub-section (1)(a);
(b) for ten consecutive tax years out of fifteen years beginning from the relevant tax
year, at the option of an assessee, in the case of an entity mentioned in sub-section
(1)(b).”
the tax year beginning on the 1st April, 2026; and
(b) in the case of an entity mentioned in sub-section (1)(b), for twenty consecutive tax years out of twenty-five years beginning from the relevant tax
year, at the option of an assessee.]
(3) The income referred to in sub-section (1) shall be the income from—
(a) an Offshore Banking Unit located in a Special Economic Zone; or
(b) the business activities referred to in section 6(1) of the Banking Regulation Act, 1949 (10 of 1949), with undertakings in a Special Economic
Zone or entities that develop, develop and operate, or develop, operate
and maintain Special Economic Zone; or
(c) the approved business activities of any Unit of an International Financial
Services Centre set up in a Special Economic Zone; or
(d) transfer of an asset being, an aircraft or a ship, leased by a unit referred
to in clause (c) if such unit commenced its business operations by 31st
March, 2030.
(4) The deduction under this section shall be allowed only if the assessee submits
along with the return of income—
(a) a report in the form as may be prescribed, from an accountant certifying
the correctness of claim of deduction; and
(b) a copy of the—
(i) permission obtained under section 23(1)(a) of the Banking Regulation Act, 1949 (10 of 1949); or
(ii) permission or registration obtained under the International Financial Services Centres Authority Act, 2019 (50 of 2019).
14
[(5) In respect of any Offshore Banking Unit or any other unit referred in sub-section (1), commencing operations on or after the 1st April, 2026, the deduction under
14. Sub-sections (5) and (6) substituted for sub-section (5) by the Finance Act, 2026, w.e.f.
1-4-2026. Prior to its substitution, sub-section (5) read as under :
‘(5) For the purposes of this section,—
(a) “relevant tax year” shall be,—
(i) in case of an entity mentioned in sub-section (1)(a), the tax year in which
permission under section 23(1)(a) of the Banking Regulation Act, 1949 (10
of 1949), or permission or registration under the Securities and Exchange
Board of India Act, 1992 (15 of 1992) or any other relevant law was obtained;
or
(ii) in case of an entity mentioned in sub-section (1)(b), the tax year in which
permission under section 23(1)(a) of the Banking Regulation Act, 1949 (10
of 1949), or permission or registration under the Securities and Exchange
Board of India Act, 1992 (15 of 1992), or permission or registration under
the International Financial Services Centres Authority Act, 2019 (50 of 2019)
was obtained;
(b) “Unit” shall have the same meaning as assigned to it in section 2(zc) of the Special
Economic Zones Act, 2005 (28 of 2005) ;
(c) “aircraft” and “ship” shall have the meanings respectively assigned to them in
Schedule VI (Note 3).’
sub-section (1) shall be available only if such unit is not formed by splitting up or
reconstruction or reorganisation or transfer of a business already in existence in India.
(6) For the purposes of this section,—
(a) “relevant tax year” shall be,—
(i) in case of an entity referred to in sub-section (1)(a), the tax year in
which permission under section 23(1)(a) of the Banking Regulation Act, 1949 (10 of 1949), or permission or registration under the
Securities and Exchange Board of India Act, 1992 (15 of 1992) or
any other relevant law in force was obtained; or
(ii) in case of an entity referred to in sub-section (1)(b), the tax year in
which permission under section 23(1)(a) of the Banking Regulation Act, 1949 (10 of 1949), or permission or registration under the
Securities and Exchange Board of India Act, 1992 (15 of 1992), or
permission or registration under the International Financial Services
Centres Authority Act, 2019 (50 of 2019) was obtained;
(b) “Unit” shall have the same meaning as assigned to it in section 2(zc) of the
Special Economic Zones Act, 2005 (28 of 2005);
(c) “aircraft” and “ship” shall have the meanings respectively assigned to them
in Schedule VI (Note 3).]In simple languageSpecified Offshore Banking Units and IFSC units can deduct 100% of qualifying income for the statutory claim period. Finance Act, 2026 expanded the period and introduced an anti-splitting/reconstruction condition for units commencing on or after 1 April 2026.
Practical exampleAn eligible IFSC unit chooses qualifying years within the 20-out-of-25-year framework, subject to its category, commencement and permissions.
Exception / professional alertRule 69 requires Form 35 and copies of regulatory permissions. Income must fit subsection (3); unit formation and commencement date matter.
Statutory text
149. (1) If the gross total income of an assessee, being a co-operative society,
includes any income referred to in sub-section (2), the sums specified in
the said sub-section shall, in accordance with and subject to the provisions of this
section, be allowed as deduction in computing the total income of such assessee.
(2) The sums referred to in sub-section (1) shall be the following:—
(a) in the case of a co-operative society engaged in—
(i) carrying on the business of banking or providing credit facilities
to its members; or
(ii) a cottage industry; or
(iii) the marketing of agricultural produce grown by its members; or
(iv) the purchase of agricultural implements, seeds, livestock or other
articles intended for agriculture for the purpose of supplying them
to its members; or
(v) the processing, without the aid of power, of the agricultural produce
of its members; or
(vi) the collective disposal of the labour of its members; or
(vii) fishing or allied activities, that is to say, the catching, curing, processing, preserving, storing or marketing of fish or the purchase of
materials and equipment in connection therewith for the purpose
of supplying them to its members,
the whole of the amount of profits and gains of business attributable to
any one or more of such activities;
(b) in the case of a co-operative society, being a primary society engaged in
supplying milk, oilseeds, 15[cotton seed, cattle feed,] fruits, or vegetables
raised or grown by its members to—
(i) a federal co-operative society, being a society, engaged in the business of supplying milk, oilseeds, 15[cotton seed, cattle feed,] fruits
or vegetables; or
(ii) the Government or a local authority; or
(iii) a Government company, as defined in section 2(45) of the
Companies Act, 2013 (18 of 2013), or a corporation established by
or under a Central Act or State Act or Provincial Act, engaged in
supplying milk, oilseeds, 15[cotton seed, cattle feed,] fruits or vegetables, as the case may be, to the public,
the whole of the amount of profits and gains of such business;
(c) in the case of a co-operative society engaged in activities other than those
specified in clause (a) or (b), (either independently of, or in addition to,
all or any of the activities so specified), that amount of profits and gains
attributable to such activities as does not exceed—
(i) ₹ 100000, if the society is a consumers’ co-operative society; and
(ii) ₹ 50000, in any other case;
[(d) in respect of any income derived by the co-operative society from its invest-
16
ments with any other co-operative society by way of—
15. Inserted by the Finance Act, 2026, w.e.f. 1-4-2026.
16. Substituted by the Finance Act, 2026, w.e.f. 1-4-2026. Prior to its substitution, clause (d)
read as under :
“(d) in respect of any income by way of interest or dividends derived by the co-operative
society from its investments with any other co-operative society, the whole of such
income;”
(i) interest; or
(ii) dividends,
the whole of such income;]
(e) in respect of any income derived by the co-operative society from the
letting of godowns or warehouses for storage, processing, or facilitating
the marketing of commodities, the whole of such income;
(f) in the case of a co-operative society, not being—
(i) a housing society; or
(ii) an urban consumers’ society (being a society for the benefit of the
consumers within the limits of a municipal corporation, municipality, municipal committee, notified area committee, town area,
or cantonment); or
(iii) a society carrying on transport business; or
(iv) a society engaged in performing manufacturing operations with
the aid of power,
where the gross total income does not exceed ₹ 20000, the amount
of income by way of interest on securities; any income from house
property chargeable under section 20.
(3) In the case of a co-operative society as referred to in sub-section (2)(a)(vi) or
(vii), provisions of sub-section (1) shall only apply when the rules and bye-laws of
the society restrict the voting rights to the following classes of its members:—
(i) the individuals who contribute their labour or carry on fishing or
allied activities;
(ii) the co-operative credit societies which provide financial assistance to
the society;
(iii) the State Government.
(4) The deduction under sub-section (1) in relation to the sums specified in subsection (2)(a) or (b) or (c) or sub-section (3), shall be allowed with reference to the
income referred to in those sub-sections included in the gross total income after
reducing the deduction under section 138, if the assessee is also entitled to such
deduction.
(5) The provision of this section shall not apply to any co-operative bank which is
not a primary agricultural credit society or a primary co-operative agricultural and
rural development bank.
17
[(6) For the purposes of this section,––
(a) “consumers’ co-operative society” means a society for the benefit of the
consumers;
(b) “primary agricultural credit society” has the same meaning as assigned to
it in Part V of the Banking Regulation Act, 1949 (10 of 1949); and
17. Inserted by the Finance Act, 2026, w.e.f. 1-4-2026.
(c) “primary co-operative agricultural and rural development bank” means a
society having an area of operation confined to a taluk, the principal object
of which is to provide long-term credit for agricultural and rural development activities.]
18
[In simple languageCo-operative societies can deduct specified income streams under detailed activity-based rules, including qualifying member credit, cottage industry, marketing, processing, collective disposal, fishing, investment income from other co-operatives and warehouse income.
Practical exampleA qualifying co-operative earns ₹12 lakh from an eligible member-focused activity and ₹2 lakh from a non-eligible commercial activity. Only the statutorily qualifying stream enters the deduction computation.
Exception / professional alertFinance Act, 2026 clarified inter-co-operative investment income and inserted definitions. Co-operative banks and certain societies face specific exclusions and conditions.
Applied case studies
Case 1: The ₹1.5 lakh ceilingPF ₹80,000 + tuition ₹45,000 + housing principal ₹60,000 = ₹1.85 lakh eligible pool. Section 123 deduction is ₹1.50 lakh.
Case 2: NPS employer contributionPrivate employer contributes 14% of salary. Compare regular-regime 10% limit with section 202 default-regime 14% substitution.
Case 3: Minor NPS accountParent deposits to a permitted minor account. Combine the section 124(3) and minor-account claim within the single ₹50,000 ceiling.
Case 4: Health insurance basketsSelf/family premium ₹25,000 and senior-parent premium ₹50,000 are tested in separate statutory baskets.
Case 5: Specified disease reimbursement₹90,000 eligible treatment less ₹20,000 reimbursement gives ₹70,000 net; apply the patient-age cap after reduction.
Case 6: Education-loan clockInterest starts in 2026-27. Count the initial year plus seven succeeding years; principal remains outside section 129.
Case 7: Affordable-house cohortLoan sanctioned after the statutory window fails even if property value and first-home conditions are otherwise met.
Case 8: Donation qualifying limitA 50% donation subject to the adjusted-GTI ceiling requires two computations: qualifying amount and deduction percentage.
Case 9: Cash donationA ₹10,000 cash donation to an approved fund does not become deductible merely because the donee is eligible.
Case 10: Rent formulaRent ₹12,000/month, total income ₹6 lakh: compare rent less 10%, ₹5,000/month and 25% of total income.
Case 11: Political contributionBank transfer to a qualifying political party may be deductible; cash is not. Corporate-law approvals remain separate.
Case 12: Legacy infrastructure holidayAn old section 80-IA undertaking with two years left receives only the residual period under section 138.
Case 13: Start-up selectionA certified start-up chooses any three consecutive years within ten; changing to non-consecutive years is not permitted.
Case 14: SEZ reserveA section 144 claim involving reinvestment reserve requires Form 33 and utilisation tracking.
Case 15: Additional employee costAdditional eligible employee cost ₹30 lakh yields ₹9 lakh deduction for each of three years, subject to section 146.
Case 16: IFSC claim windowAn IFSC unit must classify income under section 147(3) and choose years within the applicable 20/25-year framework.
Case 17: Dividend redistributionCompany receives ₹10 crore dividends and redistributes ₹7 crore in time; section 148 is capped at ₹7 crore.
Case 18: Co-operative mixed incomeSeparate eligible member-linked income from ordinary commercial income before applying section 149.
Case 19: Federal co-operative sunsetA claim for a tax year beginning on 1 April 2029 is outside section 150.
Case 20: Author royaltyEligible computed royalty ₹4 lakh is capped at ₹3 lakh, and Form 36 is required.
Case 21: Deposit interestNon-senior individual: savings interest only up to ₹10,000. Senior citizen: eligible account interest up to ₹50,000.
Case 22: Own versus dependant disabilitySection 154 is for the taxpayer’s own disability; section 127 is for a dependant.
Q&AFrequently asked questions
1. Can Chapter VIII deductions create a tax loss?
No. Section 122 caps the aggregate deduction at gross total income.
1222. Is a Part C deduction available if the return is late?
Section 122(5) requires the section 263(1) due-date return and a claim in that return.
1223. What is the overall section 123 limit?
₹1.5 lakh for the aggregate qualifying Schedule XV payments.
123 / Schedule XV4. Does housing-loan interest fall under section 123?
No. Schedule XV can cover qualifying principal and specified acquisition payments; interest is governed separately.
123 / Schedule XV5. Is the ₹50,000 NPS contribution limit additional to section 123?
Section 124 provides a separate ₹50,000 ceiling, but the same amount cannot be deducted twice.
1246. What employer NPS percentage applies in the default regime?
Section 124(2) substitutes 14% for the 10% private-employer limit when total income is taxed under section 202(1).
124, 2027. Can cash preventive-health-check-up expenditure qualify?
The section preserves a specific cash exception for preventive health check-up within its sub-limit.
1268. Does section 127 depend on actual expenditure?
It provides a fixed deduction subject to the statutory conditions, not a reimbursement equal to actual expenditure.
1279. Which medical document is required under section 128?
A Rule 62 prescription from the specified specialist, with reimbursement details.
128, Rule 6210. How long is higher-education-loan interest deductible?
Initial tax year plus seven succeeding tax years, or until interest is fully paid, whichever is earlier.
12911. Are sections 130 to 132 open to new loans in 2026?
Their sanction windows are historical; only loans within the specified cohorts can qualify.
130-13212. Is every donation deductible at 100%?
No. Section 133 has 100% and 50% categories, some subject to the adjusted-GTI ceiling.
13313. What is the cash limit for donation deduction?
A donation over ₹2,000 is deductible only when paid otherwise than in cash.
13314. What form supports the rent deduction?
Rule 65 requires Form 31.
134, Rule 6515. Can a company deduct a cash political contribution?
No. Section 136 excludes cash contributions.
13616. Can an individual deduct a cash political contribution?
No. Section 137 excludes cash contributions.
13717. Do sections 138, 139, 141, 142 and 144 create new tax holidays?
Generally no. They preserve eligible residual claims under the repealed 1961 Act.
138-14418. How many years can an eligible start-up claim?
Three consecutive tax years selected within ten years from incorporation, subject to all conditions.
14019. What audit form applies to the principal profit-linked deductions?
Rule 66 prescribes Form 32, generally undertaking-wise.
Rule 6620. How long is the biodegradable-waste deduction?
Five consecutive tax years beginning with the commencement year.
14521. What is the additional employee cost deduction?
30% of eligible additional employee cost for three consecutive tax years.
14622. Which report supports section 146?
Rule 68 prescribes Form 34.
146, Rule 6823. Which report supports the IFSC/OBU deduction?
Rule 69 prescribes Form 35.
147, Rule 6924. How is section 148 capped?
By the qualifying dividend redistributed at least one month before the return due date.
14825. Does section 149 exempt all co-operative income?
No. It lists specified income and contains entity/activity exclusions and conditions.
14926. When does section 150 stop applying?
It does not apply to a tax year beginning on or after 1 April 2029.
15027. What is the author-royalty cap?
₹3 lakh, subject to the statutory royalty computation and certificates.
15128. What is the patent-royalty cap?
₹3 lakh, subject to patentee, inventor, patent and certificate conditions.
15229. What deposit-interest deduction applies to a non-senior individual?
Up to ₹10,000 of eligible savings-account interest.
15330. What deposit-interest deduction applies to a senior citizen?
Up to ₹50,000 of eligible interest on any qualifying deposit account.
15331. What is the section 154 amount?
₹75,000 for disability and ₹1.25 lakh for severe disability.
15432. Are most Chapter VIII deductions available under the default regime?
Section 202 generally denies Chapter VIII deductions except the specifically preserved provisions, with a separate IFSC rule in section 202(5).
20233. Can the same income or payment support two deductions?
No. Section 122 and the specific provisions contain anti-duplication rules.
12234. What evidence should be preserved?
Payment trail, approval/registration, certificate or form, beneficiary eligibility, computation, return claim and the legal provision applicable to the tax year.
122-154