Section 125
Section 125: deduction for contribution to the Agnipath Scheme
Section 125 gives a deduction to an individual enrolled in the Agnipath Scheme (the Armed Forces enrolment scheme introduced by the Ministry of Defence) who subscribes to the Agniveer Corpus Fund on or after 1 November 2022, covering both the individual's own contribution and the Central Government's matching contribution.
Deduction for the individual's own contribution
An individual who has enrolled in the Agnipath Scheme and subscribes to the Agniveer Corpus Fund on or after 1 November 2022 is allowed a deduction, in computing total income, of the whole of the amount paid or deposited in their account in the Fund during the tax year.
Deduction for the Central Government's contribution
Where the Central Government makes any contribution to the assessee's account in the Fund, the assessee is allowed a deduction, in computing total income, of the whole of the amount so contributed.
Key definitions
"Agnipath Scheme" means the scheme for enrolment in the Indian Armed Forces introduced vide letter No. 1(23)2022/D(Pay/Services), dated 29 December 2022, of the Government of India, Ministry of Defence.
"Agniveer Corpus Fund" means a fund in which the consolidated contributions of all Agniveers, matching contributions of the Central Government, and interest on both these contributions, are held.
Frequently asked questions
Who can claim the Section 125 deduction?
An individual enrolled in the Agnipath Scheme who subscribes to the Agniveer Corpus Fund on or after 1 November 2022.
Is the deduction limited to a specific amount?
No - the section allows a deduction of the whole amount paid or deposited by the individual, and separately the whole amount contributed by the Central Government, to the Agniveer Corpus Fund during the tax year.
Does the deduction cover the Government's matching contribution too?
Yes - Section 125(2) separately allows a deduction for the whole of any amount the Central Government contributes to the assessee's account in the Fund.
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Get help claiming your Agniveer Corpus Fund deductionLast updated 9 September 2026