Section 125 — Deduction in respect of contribution to Agnipath Scheme

(1) An assessee, being an individual who has enrolled in the Agnipath Scheme
and subscribes to the Agniveer Corpus Fund on or after the 1st November,
2022, shall be allowed a deduction in the computation of his total income, of the
whole of the amount paid or deposited in his account in the said Fund during the
tax year.
(2) Where the Central Government makes any contribution to the account of an
assessee in the Fund referred to in sub-section (1), the assessee shall be allowed a
deduction in the computation of his total income of the whole of the amount so
contributed.
(3) For the purposes of this section,—
( a) “ Agnipath Scheme” means the scheme for enrolment in the Indian Armed
Forces introduced vide letter No. 1(23)2022/D(Pay/Services), dated the
29th December, 2022, of the Government of India in the Ministry of
Defence;
( b) “ Agniveer Corpus Fund” means a fund in which consolidated contri -
butions of all the Agniveers and matching contributions of the Central
Government along with interest on both these contributions are held.