Deduction in respect of investment made under Rajiv Gandhi Equity Saving Scheme - Section 80CCG - Income Tax - Ready Reckoner - Income Tax

Deduction in respect of investment made under Rajiv Gandhi Equity Saving Scheme - Section 80CCG Deduction eligible only upto AY 2017-18 Commonly known as Rajiv Gandhi Equity Savings scheme. The purpose of the scheme was to increase the savings for the investors who invest in domestic capital market. The tax saving scheme came into effect post 2012-13 was phased out completely since 1st April 2017 due to lack of adoption. Eligibility Resident individual This section provides deduction in respect of investment made under notified equity saving scheme, for first time investors only. This section is over and above the deductions available under section 80C of Income Tax Act, 1961. Conditions for deductions : The gross total income of the assessee shall not exceed 12 Lakhs The assessee has acquired listed shares in accordance with a notified scheme or listed units of an equity oriented fund as defined in Section 10(38) The assessee is a new retail investor The investment is locked-in for a period of 3 years from the date of acquisition in accordance with the above scheme. Amount of deduction : The amount of deduction is at 50% of amount invested in equity shares/ units. However, the amount of deduction under this provision cannot exceed 25,000. The deduction is allowed for three consecutive AY s beginning with the AY in which the listed equity shares or units were first acquired. Withdrawal of deduction: If the assesse, 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. Note:- No deduction under this section shall be allowed in respect of any AY commencing on or after the 01.04.2018. However, if 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.