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
Key Aspects of this Scheme –
- This deduction is available to individuals only
- There is a lock-in period of 3 years for the investments made
- The income of the assessee in the year of claiming deduction must not exceed Rs 12 Lakh
- The investor must be a new retail investor
- The deduction allowed under RGESS is 50% of the total amount invested s.t. Maximum investment of Rs 50,000.
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.