Amendment of section 80CCD

Section 17 of the Finance Act, 2025 deals with amendment of section 80CCD. Amendment of section 80CCD. 17. In section 80CCD of the Income-tax Act, with effect from the 1st April, 2026,— (a) | in sub-section (1B), after the proviso, the following proviso shall be inserted, namely:— "Provided further that the deduction under this sub-section shall also be allowed, where any The Act was enacted on 16 Aug 2025.

Amendment of section 80CCD.

17. In section 80CCD of the Income-tax Act, with effect from the 1st April, 2026,—

(a)		in sub-section (1B), after the proviso, the following proviso shall be inserted, namely:—
		"Provided further that the deduction under this sub-section shall also be allowed, where any payment or deposit is made to the account of a minor under the pension scheme referred to in the said sub-section, by the assessee, being the parent or guardian of such minor, subject to the condition that the aggregate amount of deduction under this sub-section shall not exceed fifty thousand rupees.";
(b)		in sub-section (3),—

(i)		in the opening portion, for the words "in his account", the words "or a minor, in his account or the account of a minor, as the case may be," shall be substituted;
(ii)		after the proviso, the following proviso shall be inserted, namely:—

"Provided further that the amount received by a person, being the parent or guardian or nominee of a minor, on account of closure of the pension scheme referred to in sub-section (1B) due to the death of the minor, shall not be deemed to be the income of such person.";

(c)

in sub-section (4), in the opening portion, after the words "Where any amount paid or deposited by the assessee", the words "in his account or the account of a minor" shall be inserted.

Section 17, The Finance Act, 2025 (Act 7 of 2025).