To encourage new investors to Invest in Stock Market, this scheme has been introduced.

This scheme is only for new Investors who have Gross Total Income up to 12 lacs. They get deduction on investment in certain shares/units of equity oriented fund

Section 80CCG

  1. This deduction is available to Resident Individual only.
  2. Deduction is available if assessee acquires equity

       (a) Listed shares

                OR

  • Listed units of equity Oriented Fund

and fulfilled prescribed conditions .

 

  1. Amount of deduction is

     Rs 25000

    or

   50% of amount invested

   Whichever is less

This deductions allowed for 3 consecutive years beginning from the year shares were acquired.

 

  1. Conditions to be satisfied for claiming the deduction.

     (a) Gross Total Income should be up to 12 lacs

     (b) Assessee should be a new Retail Investor (as notified)

     (c) The shares or equity oriented fund may be as notified (Rajiv Gandhi Equity Saving Scheme)

     (d) There is lock-In period of 3 year from the date of acquisition.

     (e) Other conditions as may be prescribed

Note :-

  1. If any of the condition not fulfilled then it is treated as income of the year in which default occurs.
  2. No double deduction i.e. Deduction claimed under this section, then it cannot be claimed under any other section.
  1. Income Tax
  2. Deductions Under Chapter VIA
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CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides GST Training in Delhi. Register now.