Section 80C is arguably the most cited section in Indian personal finance — the go-to reference for PPF, ELSS, life insurance, and tax-saving FDs. From 1 April 2026, it becomes Section 123 under the Income-tax Act, 2025. If that sounds alarming, don't worry: the deduction limits, eligible investments, and conditions are unchanged. Only the section number — and a few groupings — have moved. Here's your complete renumbering map.
Under the Income-tax Act, 1961, most personal tax-saving deductions lived in 'Chapter VIA — Deductions to be made in computing total income', spanning Sections 80C through 80U. The Income-tax Act, 2025 reorganises these into a renumbered sequence (broadly Sections 122 to 154, depending on the specific deduction), often consolidating related sub-sections that were previously split (e.g., 80CCC and 80CCD variants) into single unified sections with schedules.
| Old Section (1961 Act) | Deduction For | New Section (2025 Act) | Amount/Conditions |
|---|---|---|---|
| 80C, 80CCC | PPF, ELSS, life insurance premium, tax-saving FD, principal repayment of home loan, etc. | Section 123 (read with Schedule XV) | Unchanged — combined ₹1.5 lakh limit (old regime) |
| 80CCD(1), 80CCD(1B), 80CCD(2) | NPS contributions (self + employer) | Section 124 | Unchanged — ₹1.5 lakh (within 80C cap) + ₹50,000 additional (80CCD(1B)) + employer contribution cap |
| 80D | Health insurance premium (self, family, parents) | Section 126 | Unchanged — ₹25,000/₹50,000 (senior citizens) limits |
| 80E | Interest on education loan | Section 129 | Unchanged — no upper limit, 8-year claim period |
| 80EE | Additional interest on home loan (first-time buyers, older scheme) | Section 130 | Unchanged conditions |
| 80EEA | Additional interest on affordable housing loan | Section 131 | Unchanged conditions |
| 80EEB | Interest on electric vehicle loan | Section 132 | Unchanged — ₹1.5 lakh limit |
| 80G | Donations to charitable institutions/funds | Section 133 | Unchanged — 50%/100% categories retained |
Just moved (no substantive change): The deduction amounts, eligibility criteria, and qualifying investments/expenses for Sections 80C, 80D, 80E, 80EE, 80EEA, 80EEB, and 80G are reported to be substantively unchanged in the 2025 Act — these are pure renumbering exercises, often consolidating multiple old sub-sections (like the various 80CCD variants) into one section with a schedule for sub-categories.
Genuinely consolidated: The three separate provisions for retirement-related contributions — 80CCC (pension fund premiums), 80CCD(1) (NPS employee contribution), 80CCD(1B) (additional NPS), and 80CCD(2) (employer NPS contribution) — are brought together under Section 124, reducing what used to require cross-referencing four different sub-sections into a single section with internal categorisation.
No. The new tax regime (which disallows most Chapter VIA deductions except Section 80CCD(2) employer NPS contribution and a few others) continues to operate on the same principle — it's just that the 'exceptions list' under the new regime will reference the renumbered sections (e.g., Section 124 instead of 80CCD(2)) rather than changing which deductions are actually allowed. If you're currently in the old regime claiming 80C, 80D, and 80G deductions, your eligibility and limits for FY 2026-27 onward continue exactly as before — just cited differently in official documents.
Mutual fund houses (for ELSS), insurance companies (for life and health insurance), banks (for tax-saving FDs and home loans), and NPS point-of-presence providers will all need to update their investment proof certificates, brochures, and marketing material to reference the new section numbers for investments made in Tax Year 2026-27 onward. Expect a transition period where both old and new section numbers are mentioned together — many providers are choosing to list both ('Section 123 [formerly 80C]') for clarity during FY 2026-27.