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Deduction in respect of Investment made under an Equity Savings Scheme [Section 80CCG]

 
  1. To whom the deduction is allowed:

  2. The deduction under the section is allowed to an individual who is resident in India.

  3. Purpose for which deduction is allowed:

    Deduction is allowed to such assessee who has—

    1. in a previous year, acquired listed equity shares or listed units of equity oriented fund in accordance with a scheme, as may be notified by the Central Government in this behalf, and

    2. satisfied the prescribed conditions.

  4. Quantum of deduction:

    The assessee shall be allowed a deduction, for 3 consecutive assessment years beginning with the assessment year relevant to previous year in which the listed equity shares or listed units of equity oriented fund were first acquired. It will be allowed to the extent of—

    1. 50% of the amount invested in such equity shares or units

    2. Rs. 25,000
      whichever is less.

    However, an assessee who has claimed deduction under this section for assessment year 2017-18 and earlier assessment years shall be allowed deduction under this section till the assessment year 2019-20 if he is otherwise eligible to claim the deduction as per the provisions of this section.

    Moreover, deduction is available up to the assessment year 2017-18.

  5. Conditions to the satisfied [Section 80CCG(3)]:

  6. Deduction under this section is available if the following conditions are satisfied –

    1. The assessee is a resident individual (maybe ordinarily resident or not ordinarily resident).

    2. His gross total income does not exceed Rs. 12 lakh.

    3. He has acquired listed shares or listed units in accordance with a notified scheme.

    4. The assessee is a new retail investor as specified in the above notified scheme.

    5. The investment is locked-in for a period of 3 years from the date of acquisition in accordance with the above scheme.

    6. The assessee satisfies any other condition as may be prescribed.

  7. Consequences if the above conditions are not satisfied [Section 80CCG(4)]:

    If the assessee, in any previous year, fails to comply with any condition specified above, the deduction originally allowed shall be deemed to be the income of the assessee of such previous year and shall be liable to tax for the assessment year relevant to such previous year.

Deductions to be made in Computing Total Income [Sections 80A to 80U (Chapter VIA)]

Related Topics...Deductions from Gross Total Income

  1. DEDUCTIONS UNDER 'CHAPTER VI-A' IN RESPECT OF "PAYMENT & INVESTMENT" ARE ALLOWED FROM SECTION 80C TO 80GGC

    Section 80C Section 80CCC Section 80CCD
    Section 80CCG Section 80D Section 80DD
    Section 80DDB Section 80E Section 80EE
    Section 80G Section 80GG Section 80GGA
  2. DEDUCTIONS UNDER 'CHAPTER VI-A' IN RESPECT OF "INCOMES" ARE ALLOWED FROM SECTION 80-IA TO 80U

    Section 80-IA Section 80-IAB Section 80-IAC
    Section 80-IB Section 80-IBA Section 80-IC
    Section 80-ID Section 80-IE Section 80-JJA
    Section 80-JJAA Section 80-LA Section 80-P
    Section 80-PA Section 80-QQB Section 80-RRB
    Section 80-TTA Section 80-TTB Section 80-U
 

 

 
 
 
 
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