What is deduction under section 80CCG?
What Is Section 80CCG of the Income Tax Act? Section 80CCG helps equity market investors by offering tax exemptions on investments. Individuals who invest their funds in the equity market with a 3-year lock-in period are eligible for this scheme.
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.
Is ELSS covered 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.
How can I get Rajiv Gandhi equity scheme?
- Open a new demat account with any DP of NSDL.
- If you already have a demat account and you are eligible, designate your demat account under RGESS.
- To designate your demat account under RGESS, submit a declaration in Form A to your DP.
- Start investing.
How do I claim 80CCG?
Deduction under Section 80CCG Individuals with a valid Demat Account who haven’t indulged in equity or derivative transactions are entitled to a 50% deduction on their investment, subject to a maximum investment of Rs 50,000. This, in essence means that investments upto Rs 50,000 can get a 50% tax deduction.
What is an equity savings scheme?
1) Equity saving schemes are hybrid funds that invest in equity, debt and arbitrage securities. 2) The equity component helps beat inflation while debt and arbitrage portions act as a cushion to minimise downside volatility. 3 They offer moderate capital appreciation and a steady income.
What is benefit of Rajiv Gandhi equity scheme?
Benefits of the Rajiv Gandhi Equity Savings Scheme Under Section 80CCG, new retail investors can enjoy tax deductions on investments of up to Rs. 50,000 on eligible securities. The investors are also eligible for an additional tax benefit of Rs. 25,000.
Are the returns from mutual funds taxable?
Short term capital gains (if the units are sold before three years) in debt mutual funds are taxed as per applicable tax rate of the investor. Therefore, if your tax rate is 30% then short term capital gains tax on debt fund is 30% + 4% cess. Long term capital gains of debt fund are taxed at 20% with indexation.
How do I invest under 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.
What is equity savings scheme?
What are the key features of section 80CCG?
Key Features of Section 80CCG: Rajiv Gandhi Equity Saving Scheme (RGESS) Income Tax Deduction under Section 80CCGfor Investment through Rajiv Gandhi Equity Saving Scheme is available to only individuals and not to HUF’s. Moreover, the individual should be resident in India and should not be a non-resident.
What is the deduction under Section 80 CCG?
The deduction under section 80 CCG was enacted in 2012. The broad provisions of the Scheme and the income tax benefits under it have already been incorporated as a new Section -80CCG- of the Income Tax (IT) Act, 1961, as amended by the Finance Act, 2012. This concept was introduced in India in the finance Act,2012.
Who can claim deduction under section 80CCG under Rajiv Gandhi scheme?
Individuals who are the second holder of an account and don’t have any account as the first holder, are also eligible to be classified as a new retail investor and are allowed to claim deduction under Section 80CCG for the Rajiv Gandhi Equity Saving Scheme.
What is section 80CCG under RGESS 2021?
The RGESS permits a deduction under Section 80CCG for investments in equity shares and mutual funds. Date: 20 May, 2021 | The Income Tax Department extends the following due dates – Income Tax Return filing date extended to 31st Dec,21 from 30th Sep 2021.