Updated on: Jan 13th, 2022
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3 min read
Note : Deduction under section 80CCG has been discontinued starting from 1st April 2017.
The Rajiv Gandhi Equity Savings Scheme was introduced in Budget 2012. This deduction was over and above the 80C deduction available to individuals.
Starting from 1st April 2017 the scheme is being phased out. This is because a very limited number of assessees avail this deduction. Due to this phasing out, a new investor in Financial Year 2017-18 will not be eligible to claim the deduction under section 80CCG. However, any individual who has claimed the deduction in Financial Year 2016-17 and earlier years shall be allowed a deduction in Financial Year 2017-18 if he is eligible for the same.
Deduction under section 80CCG discontinued from April 2017. RGESS benefits: 50% deduction, max investment Rs 50,000. Assessee's income must not exceed Rs 12 Lakh. Only for new retail investors with 3-year lock-in period. Phasing out due to limited users. Investors in 2016-17 still eligible for deduction in 2017-18.