Section-123: Deduction for life insurance premia, deferred annuity, contributions to provident fund, etc

Section-123 : Deduction for life insurance premia, deferred annuity, contributions to provident fund, etc

Section-123 provides for deduction for insurance premia, deferred annuity, contributions to provident fund, etc. and to provide deduction to an assessee being an individual or Hindu undivided family in respect of payments made on account of insurance premia, deferred annuity, contribution to provident fund etc. specified in the relevant proposed Schedule. Learn to understand the section-123 as it is, it's help and useful links to follow.

Here onwards, "Act" refers to "Income Tax Act 2025"

1. Section-123 as per act

An individual or a Hindu undivided family, shall be allowed a deduction of the whole of the amount paid or deposited in the tax year, being the aggregate of the sums enumerated in Schedule XV, but not exceeding one lakh fifty thousand rupees, while computing the total income for that year, subject to the conditions specified in that Schedule.