Section 80C → Section 123

Deduction for life insurance, PF, PPF, ELSS, tuition fees, home-loan principal and other specified savings

New reference Section 123 read with Schedule XV

Income-tax Act, 1961Section 80C

Chapter VI-A deduction for individuals and HUFs
Eligible investments and payments listed within the section itself
Aggregate cap of ₹1,50,000 (with 80CCC and 80CCD(1)) under section 80CCE
Available only under the old tax regime

Applies to FY 2025-26 (AY 2026-27) and earlier years.

Income-tax Act, 2025Section 123 read with Schedule XV

Deduction now sits in section 123 (Chapter VIII)
Eligible investments and payments moved to a table in Schedule XV
Same ₹1,50,000 limit; 80CCC is absorbed into section 123
Still unavailable if the default new regime (section 202) applies

Applies from tax year 2026-27 (from 1 April 2026).

What changed

Renumbering and restructuring, not a policy change. The list of eligible items moves out of the section into Schedule XV, and the separate aggregate-cap section (80CCE) is folded in. The limit and the eligible investments are unchanged.

Practice notes

For investments made in tax year 2026-27 onwards, cite section 123 (read with Schedule XV) in computations and declarations to employers.
Employee and employer NPS contributions (old 80CCD) now sit in section 124, not 123.
Claims for FY 2025-26 (AY 2026-27) returns are still made under section 80C of the 1961 Act.

These are summaries, not the statutory text. Read the bare Act for both sections on the Income Tax Department's official site, which also has a side-by-side comparison utility.

Related sections

80D→126Deduction for health insurance premium, preventive health check-up and medical expenditure for senior citizens 115BAC→202New tax regime (default) for individuals, HUFs, AOPs, BOIs and artificial juridical persons