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Agniveer Corpus Fund deduction — Section 125 (old 80CCH)

In short

An Agniveer's own contribution to the Agniveer Corpus Fund, plus the Central Government's matching contribution, is fully deductibleSection 125, Income-tax Act 2025 (old 80CCH) — and it's one of the few deductions that works in the new regime too.

The deduction

  • The Agniveer's own contribution to the Agniveer Corpus Fund is deductible in full.
  • The Government's matching contribution is first added to salary and then allowed as a deduction — so it is effectively tax-neutral.

Why it matters

Unlike most Chapter-VIA deductions, this one is available under both the old and the new regime, so an Agniveer on the default new regime still gets it.

Who it helps

Personnel enrolled under the Agnipath Scheme, 2022. The final lump sum received from the Corpus Fund on exit is also exempt.

The law behind it
Section 125 (old 80CCH)
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General information for FY 2025-26 (AY 2026-27), not advice on your specific case. Limits, rates and conditions change with each Finance Act and depend on your facts — confirm before acting. © EaseValue Advisors LLP.
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