1. Section 122 – General Rules for Deductions

New Sec 122 Old Sec 80A / 80AB / 80AC

Section 122 is the foundational starting point for Chapter VIII. It sets out the general framework for deductions from Gross Total Income (GTI):

• Ceiling on Deductions: Total deductions cannot exceed the taxpayer's Gross Total Income. A deduction cannot create or enhance a loss.
• Timely Return Filing: Contains mandatory conditions relating to timely filing of the income-tax return (ITR) for claiming profit-linked and business deductions.
• No Double Deduction: The same amount or expense cannot be claimed twice under different sections.

2. Section 123 – Life Insurance, PF, Tuition Fees & Investments

New Sec 123 Old Sec 80C

Section 123 broadly corresponds to Section 80C of the old Act. It provides a deduction to eligible Individuals and HUFs for specified investments and savings payments.

Eligible Payments & Investments Include:

• Life insurance premiums (for self, spouse, and children, meeting policy conditions)
• Employee's Provident Fund (EPF) & Public Provident Fund (PPF)
• Tuition fees for up to 2 eligible children (full-time education in India)
• National Savings Certificates (NSC) & Sukanya Samriddhi Yojana (SSY)
• Principal repayment of eligible housing loan (taken for residential house)
• 5-year tax-saver bank fixed deposits and Post Office time deposits

3. Section 124 – NPS and Pension Scheme Contribution

New Sec 124 Old Sec 80CCD

Section 124 corresponds to Section 80CCD. It provides tax deductions for contributions made to the National Pension System (NPS) or other Central Government notified pension schemes.

4. Section 125 – Deduction for Agnipath Scheme

New Sec 125 Old Sec 80CCH

Section 125 corresponds to Section 80CCH. It provides a deduction for contributions made under the Agnipath Scheme to the Agniveer Corpus Fund.

• Available to an individual enrolled in the Agnipath Scheme.
• Deduction: 100% of the eligible contribution made by the Agniveer.
• Contributions made by the Central Government to the Agniveer Corpus Fund also receive corresponding statutory tax treatment.

5. Section 126 – Health Insurance Premium & Medical Expenses

New Sec 126 Old Sec 80D

Section 126 provides deductions for health insurance premiums, preventive health check-ups, and medical expenditure for senior citizens. It corresponds to Section 80D of the 1961 Act.

6. Section 127 – Maintenance of Dependant with Disability

New Sec 127 Old Sec 80DD

Section 127 corresponds to Section 80DD. It provides a fixed deduction to resident Individuals and HUFs for the maintenance, medical treatment, training, or rehabilitation of a dependant with a disability.

• Disability (40% or more): Fixed deduction of ₹75,000.
• Severe Disability (80% or more): Fixed deduction of ₹1,25,000.
• Key Rule: This is a flat statutory deduction irrespective of the actual expenditure incurred. A valid disability certificate from a recognized medical authority is mandatory.

7. Section 128 – Medical Treatment of Specified Diseases

New Sec 128 Old Sec 80DDB

Section 128 corresponds to Section 80DDB, allowing deductions for expenditure on medical treatment of specified chronic ailments (e.g., cancer, renal failure, neurological diseases):

• Individuals below 60 years: Lower of actual eligible expenditure or ₹40,000.
• Senior Citizens (60 years or above): Lower of actual eligible expenditure or ₹1,00,000.
• Insurance Reimbursement: Any amount reimbursed by an insurance company or employer is deducted from the claimable amount.

8. Section 129 – Interest on Higher Education Loans

New Sec 129 Old Sec 80E

Section 129 corresponds to Section 80E. It provides a deduction for interest paid on an education loan taken for higher education of self, spouse, children, or a student for whom the individual is a legal guardian.

• Monetary Limit: No upper ceiling (100% of interest paid qualifies).
• Tenure: Available for up to 8 consecutive tax years starting from the year repayment begins, or until interest is fully repaid.
• Lender Requirement: Loan must be obtained from an approved financial institution or charitable trust.

9. Section 130 – Interest on Certain Housing Loans

New Sec 130 Old Sec 80EE

Section 130 corresponds to Section 80EE. It provides an additional deduction for interest paid on qualifying first-time home loans sanctioned between 1 April 2016 and 31 March 2017:

• Maximum Deduction: Up to ₹50,000 per year.
• Conditions: Stamp-duty value of the house ≤ ₹50 lakh; loan amount ≤ ₹35 lakh; taxpayer must not own any other residential property on the sanction date.

10. Section 131 – Interest on Affordable Housing Loans

New Sec 131 Old Sec 80EEA

Section 131 corresponds to Section 80EEA. It provides an additional deduction for interest on loans taken for acquiring an affordable residential house property:

• Maximum Deduction: Up to ₹1,50,000 per year.
• Conditions: Loan sanctioned between 1 April 2019 and 31 March 2022; stamp-duty value ≤ ₹45 lakh; individual should not own any other house property on the sanction date.

11. Section 132 – Interest on Electric Vehicle Loans

New Sec 132 Old Sec 80EEB

Section 132 corresponds to Section 80EEB. It offers a deduction for interest paid on loans taken to purchase an electric vehicle (EV):

• Maximum Deduction: Up to ₹1,50,000 per year.
• Conditions: Loan sanctioned by a financial institution between 1 April 2019 and 31 March 2023.

12. Section 133 – Donations to Charitable Institutions & Funds

New Sec 133 Old Sec 80G

Section 133 corresponds to Section 80G. It provides deductions for donations made to eligible charitable institutions, relief funds, and trusts:

• Deduction Percentage: 100% or 50% depending on the fund category (with or without qualifying limits).
• Cash Restriction: Donations exceeding ₹2,000 in cash are not eligible for deduction. Payment must be made through banking or digital channels.
• Documentation: Valid donation receipts with Form 10BE certificate details must be retained.

13. Section 134 – Deduction for Rent Paid (Without HRA)

New Sec 134 Old Sec 80GG

Section 134 corresponds to Section 80GG. It provides relief to self-employed individuals or salaried employees who pay house rent but do not receive House Rent Allowance (HRA).

Deduction is the LEAST of the following three amounts:

14–16. Sections 135 to 137 – Scientific Research & Political Contributions

New Sec 135–137 Old Sec 80GGA / 80GGB / 80GGC

• Section 135 (Old 80GGA): 100% deduction for donations for scientific research or rural development by taxpayers without business income. Cash over ₹2,000 is disallowed.
• Section 136 (Old 80GGB): 100% deduction for Indian companies making non-cash political contributions to recognized parties or electoral trusts.
• Section 137 (Old 80GGC): 100% deduction for non-company taxpayers making non-cash political contributions.

17–26. Sections 138 to 147 – Business, Start-up, SEZ & Employment Deductions

New Sec 138–147 Old Sec 80-IA to 80LA

27–33. Sections 148 to 154 – Royalties, Deposit Interest & Disability Relief

New Sec 148–154 Old Sec 80M, 80P, 80QQB, 80RRB, 80TTA/B, 80U

• Section 148 (Old 80M): Deduction for inter-corporate dividends redistributed to shareholders to eliminate cascading tax.
• Sections 149 & 150 (Old 80P): Deductions for specified income of qualifying co-operative societies.
• Section 151 (Old 80QQB): Up to ₹3,00,000 deduction for royalty income of authors of literary, artistic, or scientific books.
• Section 152 (Old 80RRB): Up to ₹3,00,000 deduction for patent royalties earned by resident individual inventors.
• Section 153 (Old 80TTA / 80TTB):
  • Individuals & HUFs (Below 60 yrs): Up to ₹10,000 on savings bank deposit interest.
  • Senior Citizens (60 yrs or above): Up to ₹50,000 on all bank, co-op bank, and post office deposit interest (including FDs).
• Section 154 (Old 80U): Fixed deduction of ₹75,000 (disability ≥ 40%) or ₹1,25,000 (severe disability ≥ 80%) for resident individual taxpayers with a disability.