Income Tax Act 2025: Section 125 for Tax Year 2025-26

Under Section 125 of the Income Tax Act 2025, individuals enrolled in the Agnipath Scheme can claim deductions for contributions to the Agniveer Corpus Fund.

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Deduction in respect of contribution to Agnipath Scheme

[As per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]

Section 125(1) of Income Tax Act 2025

(1) An assessee, being an individual who has enrolled in the Agnipath Scheme and subscribes to the Agniveer Corpus Fund on or after the 1st November, 2022, shall be allowed a deduction in the computation of his total income, of the whole of the amount paid or deposited in his account in the said Fund during the tax year.

Section 125(2) of Income Tax Act 2025

(2) Where the Central Government makes any contribution to the account of an assessee in the Fund referred to in sub-section (1), the assessee shall be allowed a deduction in the computation of his total income of the whole of the amount so contributed.

Section 125(3) of Income Tax Act 2025

(3) In this section,—
(a) “Agnipath Scheme” means the scheme for enrolment in the Indian Armed Forces introduced vide letter No. 1(23)2022/D(Pay/Services), dated the 29th December, 2022, of the Government of India in the Ministry of Defence;
(b) “Agniveer Corpus Fund” means a fund in which consolidated contributions of all the Agniveers and matching contributions of the Central Government along with interest on both these contributions are held.


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