Article

Section 123 of the Income-tax Act, 2025 (formerly 80C)

ClearTax Free Beginner India

A guide to section 123 and Schedule XV, the provision that replaced section 80C from 1 April 2026: what qualifies and the limit.

  • Section 123 replaces section 80C from tax year 2026-27, with the same combined ₹1.5 lakh limit.
  • PPF, ELSS, EPF, life insurance premiums, NPS Tier I, tuition fees and home loan principal still qualify.
  • It is available only in the old regime; income up to 31 March 2026 is still claimed under 80C.
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Curated reading that points you to the sources, not personalised investment advice.

It answers 5 questions

  1. How can I legally lower the tax on my investments?
  2. Should I lock money in PPF when I might need it for the startup?
  3. Should I put my 80C tax-saving money in ELSS or PPF?
  4. What does the new Income-tax Act, 2025 change for me personally?
  5. Old or new tax regime: which should I pick on a founder's salary?

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