For decades, "80C" was the most Googled tax section in India. From April 2026, it no longer exists. Every investment you knew under 80C now lives under Section 123 and Schedule XV. Here's the complete mapping — no jargon, no confusion.
Section 80C of the Income-tax Act, 1961 has been replaced by Section 123 of the Income-tax Act, 2025. The maximum deduction limit remains ₹1,50,000 per financial year. All the familiar investments — PPF, ELSS, LIC, EPF, NSC, tuition fees, home loan principal — continue to qualify. The eligible list is now defined in Schedule XV of the new Act, instead of being embedded within the section text. This is available only under the Old Tax Regime.
Here's every investment that was eligible under Section 80C, mapped to its new reference under Section 123 and Schedule XV:
| Investment / Expense | Old Act (80C) | New Act (Sec 123) | Lock-in |
|---|---|---|---|
| Employee Provident Fund (EPF) | 80C | Sec 123, Schedule XV, Item 1 | Till retirement |
| Public Provident Fund (PPF) | 80C | Sec 123, Schedule XV, Item 1 | 15 years |
| Voluntary Provident Fund (VPF) | 80C | Sec 123, Schedule XV, Item 1 | Till retirement |
| ELSS Mutual Funds | 80C | Sec 123, Schedule XV, Item 2 | 3 years |
| Life Insurance Premium (LIC etc.) | 80C | Sec 123, Schedule XV, Item 3 | Policy term |
| National Savings Certificate (NSC) | 80C | Sec 123, Schedule XV, Item 4 | 5 years |
| 5-Year Bank FD (Tax Saver) | 80C | Sec 123, Schedule XV, Item 5 | 5 years |
| Sukanya Samriddhi Yojana (SSY) | 80C | Sec 123, Schedule XV, Item 6 | 21 years |
| Senior Citizens Savings Scheme (SCSS) | 80C | Sec 123, Schedule XV, Item 7 | 5 years |
| Home Loan Principal Repayment | 80C | Sec 123, Schedule XV, Item 8 | N/A |
| Tuition Fees (max 2 children) | 80C | Sec 123, Schedule XV, Item 9 | N/A |
| Stamp Duty & Registration | 80C | Sec 123, Schedule XV, Item 10 | N/A |
| NABARD Rural Bonds | 80C | Sec 123, Schedule XV, Item 11 | 5 years |
| Aggregate Limit | ₹1,50,000 | ₹1,50,000 | — |
The investments are identical. Only the section number changed. If you were investing in PPF, ELSS, or paying LIC premium under 80C — you continue doing exactly the same. The deduction now references Section 123 and Schedule XV instead.
Under the old Act, Section 80C was part of a larger trio:
| Old Section | What It Covered | New Section | Limit |
|---|---|---|---|
| 80C | PPF, ELSS, LIC, EPF, etc. | Section 123 | ₹1.5L (combined) |
| 80CCC | Pension fund contributions | Section 123 (merged) | Within ₹1.5L |
| 80CCD(1) | NPS (employee contribution) | Section 123 (merged) | Within ₹1.5L |
| 80CCD(1B) | NPS — additional deduction | Section 124 | ₹50,000 extra |
| 80CCD(2) | NPS (employer contribution) | Section 125 | 14% of salary |
Important: The additional ₹50,000 NPS deduction (old 80CCD(1B)) is now a standalone Section 124. This is over and above the ₹1.5L limit of Section 123. If you invest the maximum in both, your total deduction potential is ₹2,00,000.
Priya earns ₹12 lakh and opts for the Old Regime. Here's how she claims Section 123:
| Investment | Schedule XV Item | Amount |
|---|---|---|
| EPF (employer deducts) | Item 1 | ₹21,600 |
| PPF contribution | Item 1 | ₹50,000 |
| ELSS SIP (12 × ₹5,000) | Item 2 | ₹60,000 |
| LIC premium | Item 3 | ₹18,400 |
| Total Sec 123 claim | ₹1,50,000 ✓ | |
| NPS additional (Sec 124) | Separate section | ₹50,000 |
| Grand total deductions (123+124) | ₹2,00,000 |
If you're on the New Tax Regime (default from FY 2024-25 onwards), Section 123 deductions are not available. You only get the ₹75,000 standard deduction. To claim PPF, ELSS, LIC etc., you must explicitly opt for the Old Regime (Section 202).
Use our Income Tax Calculator to enter your 80C/Section 123 investments and see which regime actually saves you more.
Enter your investments in our calculator — it automatically applies Section 123 for Old Regime and shows you the side-by-side comparison.
Calculate My Tax Free →Section 123 is part of the broader deduction landscape under the new Act: