Section 125 - Deduction in respect of contribution to Agnipath Scheme
An Agniveer can deduct own contributions to the Agniveer Corpus Fund and the Central Government contribution credited to the account. The provision is tied to enrolment and subscription on or after 1 November 2022.
Reviewed by CA Nikhil Gupta · Updated 9 October 2026
Current-law control
This page uses the consolidated Income-tax Act, 2025 as amended by the Finance Act, 2026. The Act and Income-tax Rules, 2026 operate from 1 April 2026. Earlier years and saved proceedings remain subject to the repeal-and-savings framework.
Primary statute: Income Tax Department consolidated Act | Rules: Notified Income-tax Rules, 2026
2-minute decode
An Agniveer can deduct own contributions to the Agniveer Corpus Fund and the Central Government contribution credited to the account. The provision is tied to enrolment and subscription on or after 1 November 2022.
Who should use this section
Individuals/HUFs or other persons falling within the eligibility wording of this personal-payment deduction; status and payment conditions must be checked for the tax year This applicability note is specific to section 125.
Old-law bridge
1961 Act section 80CCH
The bridge is navigational only. A 1961 Act case or rule is carried forward only after checking wording, transition provisions and the current 2025 Act text.
Professional alert
Exception / professional alert The section 202 default regime preserves the deduction for the Central Government contribution under section 125(2), not necessarily every own-contribution claim.
Connected Income-tax Rules, 2026 and Forms
No provision-specific Rule/Form is independently mapped in this tranche. General return, procedure and evidence rules can still apply.
Worked application
An eligible Agniveer contributes ₹2.4 lakh and receives an equal Central Government contribution. Subject to the statutory account conditions, both streams are separately covered by section 125.
Evidence / compliance checklist
- For section 125, retain proof of payment and the instrument/recipient document that establishes statutory eligibility.
- Match beneficiary, ownership/residency/status conditions to the text for the relevant tax year (section 125: Deduction in respect of contribution to Agnipath Scheme).
- Preserve certificate/approval/registration details where the deduction depends on an approved institution or authority (section 125: Deduction in respect of contribution to Agnipath Scheme).
- Keep a computation showing the statutory ceiling, qualifying base and any cash/payment-mode restriction (section 125: Deduction in respect of contribution to Agnipath Scheme).
Common mistake
Claiming section 125 from a payment receipt alone without testing the statutory ceiling, recipient/instrument eligibility, payment mode and required certificate.
Recommended approach
For section 125, fix the governing tax year, identify the operative sub-section for “Deduction in respect of contribution to Agnipath Scheme”, trace every amount to evidence, apply only verified Rule/Form links, and retain a computation that another reviewer can reproduce from the primary source.
Thresholds, periods and timing checkpoints
No standalone numeric threshold is extracted from the section text; apply the operative conditions and linked provisions.
Judicial / interpretive bridge
No section-specific Supreme Court bridge is included for section 125 unless text-equivalence with the 2025 Act has been checked. Legacy cases should not be transplanted into section 125 merely because the subject is similar.
Related provisions
Current statutory text
Primary-source trail
FAQs
What does section 125 of the Income-tax Act, 2025 cover?
Section 125 covers deduction in respect of contribution to agnipath scheme. The operative result depends on the exact statutory conditions shown on this page and applies from 1 April 2026, subject to transition/savings provisions.
Who should check section 125?
Individuals/HUFs or other persons falling within the eligibility wording of this personal-payment deduction; status and payment conditions must be checked for the tax year This applicability note is specific to section 125.
Are there specific Rules or Forms for section 125?
No provision-specific Rule/Form independently mapped in this tranche.