What is 80CCG?

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What is 80CCG?

Section 80CCG was introduced to inculcate the habit of investing in equities among young adults. It also aims to increase the flow of capital in the domestic market. Just like other tax-saving schemes under Section 80C, the RGESS offers additional tax-benefits to first-time investors.

Who is eligible for 80CCG?

Investments Eligible under Section 80CCG Equity shares falling in the list of securities declared as BSE-100 or CNX-100 will be eligible for Section 80CCG deduction. Also, equity shares of public sector enterprises (PSUs) which are categorised as Maharatna, Navratna or Miniratna by the Central Government are eligible.

Is Section 80CCG still valid?

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.

How do I claim 80CCG?

Individuals should know that the 80CCG deduction limit is up to ₹50,000. Therefore, anything above the mentioned amount isn’t taxable. For example, an individual invests ₹50,000 in an equity scheme. Being a first-time investor, he/she is eligible to claim tax exemptions up to 50% which comes to ₹25,000.

What is 80CCG exemption?

Section 80CCG of the Income Tax Act offers incentives through means of tax deduction to taxpayers who invest in the equity market of the country. This section was recently added to encourage individuals to invest in equities, enticing first time investors with tax deductions on their first investment.

How can I join Rajiv Gandhi equity scheme?

  1. Open a new demat account with any DP of NSDL.
  2. If you already have a demat account and you are eligible, designate your demat account under RGESS.
  3. To designate your demat account under RGESS, submit a declaration in Form A to your DP.
  4. Start investing.

Is ELSS under 80CCG?

ELSS mutual funds are the only class of mutual funds that are covered under Section 80C of the Income Tax Act, 1961. By investing in an ELSS, you are entitled to claim a tax rebate of up to Rs 1,50,000 a year. This helps you save up to Rs 46,800 a year in taxes.

Is ELSS covered under 80CCG?