Clause 17 - Amendment of section 80CCD. - Finance Bill, 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.