Deduction in respect of investment made under an equity savings savings (Section 80 CCG):

Newly inserted Section 80CCG provides deduction w.e.f. assessment year 2013-14 in respect of investment made under notified equity saving scheme. The deduction under this section is available if following conditions are satisfied:

(a)  The assessee is a resident individual (may be ordinarily resident or not ordinarily resident)

(b)  His gross total income does not exceed Rs. 10 lakhs;

(c)  He has acquired listed shares in accordance with a notified scheme;

(d)  The assessee is a new retail investor as specified in the above notified scheme;

(e)  The investment is locked-in for a period of 3 years from the date of acquisition in accordance with the above scheme;

(f)  The assessee satisfies any other condition as may be prescribed.

Amount of deduction -The amount of deduction is at 50% of amount invested in equity shares. However, the amount of deduction under this provision cannot exceed Rs. 25,000. If any deduction is claimed by a taxpayer under this section in any year, he shall not be entitled to any deduction under this section for any subsequent year.

Withdrawal of deduction – If the assessee, after claiming the aforesaid deduction, fails to satisfy the above conditions, the deduction originally allowed shall be deemed to be the income of the assessee of the year in which default is committed.

A scheme named “Rajiv Gandhi Equity Savings Scheme (RGESS)” is being notified for the purpose of this deduction.

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0 responses to “Section 80 CCG Deduction – Rajiv Gandhi Equity Savings Scheme”

  1. L R SAHU says:

    I WANT TO MAKE A ADVISER FOR RAGIV GANDHI EQUITY SAVING SCHEME. PLEASE GIVE ME DETAILS FOR CONTACT ADDRESS AND FURTHER PROCESSERS WITH INCENTIVE OR BROKERAGE.
    ALSO GIVE THE REQUIRED DOCUMENT LIST TO INVEST IN ABOVE SCHME.

  2. L R SAHU says:

    I WANT TO MAKE A ADVISER FOR RAGIV GANDHI EQUITY SAVING SCHEME. PLEASE GIVE ME DETAILS FOR CONTACT ADDRESS AND FURTHER PROCESSERS WITH INCENTIVE OR BROKERAGE.

  3. Arun says:

    No, Rahul… You can avail dis deduction only for once…

  4. Rahul Jasani says:

    I had taken benifits of 80CCG last year by investing Rs.50000/- in Rajiv Gandhi Equity Saving Scheme -Section 80CCG. Can I Avail the same this year also?

  5. siva says:

    Hi..what is the last date to invest under this schema to get tax deduction?

  6. Sachin says:

    Which are the equity shares

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