Deductions formerly in Chapter VI-A of the Income-tax Act, 1961 are now Chapter VIII of the Income-tax Act, 2025, running from section 122 to section 154, with section 123 replacing 80C and section 154 replacing 80U.
The 80C to 80U deductions are not in Schedule VII. Schedule VII is read with section 11 and lists persons exempt from tax. The deductions are Chapter VIII, sections 122 to 154.
Chapter VI-A is now Chapter VIII
Every 80-series deduction moved into Chapter VIII of the Income-tax Act, 2025, running from section 122 to section 154. The renumbering is systematic: 80C becomes 123, 80D becomes 126, 80G becomes 133, 80TTA and 80TTB merge into 153, and 80U becomes 154.
Section 122 is the gateway. It absorbs sections 80A, 80AB, 80AC and 80B, and it carries the three rules that govern every claim: deductions cannot exceed gross total income; Part C deductions are lost if the return is not filed by the section 263(1) due date or the claim is not made in it; and gross total income means total income before any Chapter VIII deduction.
One structural change is worth noting: the qualifying investment list for section 123 has moved out of the section and into Schedule XV. So a Schedule is involved in the deductions — but it is Schedule XV, not Schedule VII.
The Income-tax Act, 2025 takes effect from 1 April 2026 and applies from tax year 2026-27. The Income-tax Act, 1961 continues to govern every year up to 31 March 2026 because of the repeal and savings provision in section 536. The Schedule contents described here are taken from the Act as enacted, incorporating the corrigenda notified in the Gazette on 3 September 2025.
Where each provision actually sits
| Topic | Income-tax Act, 1961 | Income-tax Act, 2025 |
|---|---|---|
| Gateway conditions | Sections 80A, 80AB, 80AC, 80B | Section 122 |
| Life insurance, PF, ELSS, tuition fees | Section 80C | Section 123 with Schedule XV |
| Pension scheme contributions | Section 80CCD | Section 124 |
| Health insurance | Section 80D | Section 126 |
| Dependant with disability | Section 80DD | Section 127 |
| Specified diseases | Section 80DDB | Section 128 |
| Education loan interest | Section 80E | Section 129 |
| Donations | Section 80G | Section 133 |
| Rent paid | Section 80GG | Section 134 |
| Savings and deposit interest | Sections 80TTA and 80TTB | Section 153 |
| Person with disability | Section 80U | Section 154 |
How Chapter VIII is organised
Section 122 — the three rules that govern everything
Deductions are allowed from gross total income and their aggregate cannot exceed it, so Chapter VIII can reduce income to nil but never create a loss. A Part C deduction is denied where the assessee fails to furnish the return by the section 263(1) due date or fails to make the claim in that return. And gross total income means total income computed before any Chapter VIII deduction.
Part B — deductions for payments
Section 123 — the ₹1,50,000 deduction, read with Schedule XV which carries the qualifying list. Section 124 — pension scheme, with the employer limb at 14% of salary under section 202(1) and a separate ₹50,000 for the individual's own contribution. Section 126 — health insurance, ₹25,000 or ₹50,000 for a senior citizen, with a ₹5,000 preventive check-up sub-limit. Sections 127, 128 and 154 — disability and medical treatment. Section 129 — education loan interest, uncapped but limited to eight years. Sections 133 to 137 — donations and political contributions.
Part C — profit-linked deductions
Sections 138 to 152 carry the profit-linked incentives — industrial undertakings, infrastructure, start-ups, housing projects, North-Eastern States, and the SEZ deduction that was section 10AA, now section 144. These are the deductions section 122(5) denies on a belated return.
Part E — other deductions
Section 153 merges 80TTA and 80TTB: ₹10,000 on savings account interest for a non-senior individual or HUF, excluding time deposits, and ₹50,000 for a senior citizen on any account including time deposits. Section 154 gives a flat ₹75,000, or ₹1,25,000 for severe disability, to a resident individual.
The regime question
Section 202 — the default new regime — restricts most Chapter VIII deductions. Read section 202 before planning any claim. Note that section 124's employer limb is one of the few that is more generous under section 202(1), at 14% for all employers.
What Schedule VII actually contains
Schedule VII lists persons who shall not be liable to pay income-tax on the total income for any tax year, subject to conditions in column C. Serial 1 is any regimental fund or non-public fund established by the armed forces for the welfare of past and present members or their dependants.
Worked example
Where five common deductions now live.
| Deduction | 1961 Act | 2025 Act |
|---|---|---|
| Life insurance, PF, ELSS, tuition fees | Section 80C | Section 123, read with Schedule XV |
| Health insurance premium | Section 80D | Section 126 |
| Education loan interest | Section 80E | Section 129 |
| Savings interest for a senior citizen | Section 80TTB | Section 153, ₹50,000 |
| Own disability | Section 80U | Section 154, ₹75,000 or ₹1,25,000 |
Note the first row. The only Schedule involved in the deduction chapter is Schedule XV, which carries the qualifying list for section 123. Schedule VII has nothing to do with deductions.
Compliance checklist
- File the return by the section 263(1) due date and make the claim in it; section 122(5) denies Part C deductions otherwise.
- Check that total Chapter VIII deductions do not exceed gross total income as defined in section 122(10).
- For section 123, read Schedule XV to decide whether a payment qualifies.
- Check section 202 before planning; the default regime restricts most of these deductions.
- Remember section 124's employer limb is 14% for all employers under section 202(1).
- Do not claim the same amount under two provisions — section 124(5) and section 85(5) both bar double counting.
Common mistakes
- Looking for the 80-series deductions in a Schedule.
- Filing a belated return and losing every Part C deduction under section 122(5).
- Expecting Chapter VIII deductions to create a carried-forward loss.
- Searching section 123 for the qualifying investment list, which is in Schedule XV.
- Assuming all these deductions survive under the default regime without reading section 202.
All sixteen Schedules of the Income-tax Act, 2025
Because the numbering is widely misquoted, the full list is reproduced below from the Act as enacted. Note that Schedules II to VII are all exemption lists, split by who is claiming rather than by what the income is.
| Schedule | Read with | Subject as enacted |
|---|---|---|
| I | section 9(12) | Conditions for certain activities not to constitute business connection in India |
| II | section 11 | Income not to be included in total income |
| III | section 11 | Income not to be included in total income of eligible persons |
| IV | section 11 | Income not to be included in total income of eligible non-residents, foreign companies and other such persons |
| V | section 11 | Income not to be included in total income of certain eligible persons including investment funds, business trusts and their unit holders |
| VI | section 11 | Income not to be included in total income of certain eligible persons in an International Financial Services Centre or having income therefrom |
| VII | section 11 | Persons exempt from tax |
| VIII | section 12 | Income not to be included in the total income of political parties and electoral trusts |
| IX | section 48 | Deduction for tea, coffee and rubber development accounts |
| X | section 49 | Deduction for Site Restoration Fund |
| XI | section 2(91) | Recognised provident funds, approved superannuation funds and approved gratuity funds |
| XII | section 51 | Minerals, and groups of associated minerals |
| XIII | section 45(2) | List of articles or things |
| XIV | section 55 | Insurance business |
| XV | section 123 | Deduction for life insurance premia, contribution to provident fund, subscription to certain equity shares, etc. |
| XVI | section 350 | Permitted modes of investment or deposits by a registered non-profit organisation |
This is an explanatory guide, not tax advice, and it does not reproduce the section in full. Read the bare text of the section before you rely on it, and check for later amendments, the Income-tax Rules made under the new Act, and CBDT circulars and notifications.