Deduction for Investment by a Resident Individual In Listed Equity Shares (80CCG)
A onetime deduction of rs 25,000 or 50 % of amount invested in listed equity shares, whichever is lower will be allowed as deduction. In order to claim such deduction following conditions are to be satisfied
- Gross total income of the assessee should be less than rs 10,00,000
- Investment is made on specified securities notified by central government
- The minimum lock in period should be 3 years
- The assessee should be a new retail investor as per the requirement specified under the notified scheme
Deduction is allowed on listed equity shares acquired in the previous year in accordance with a scheme notified by the central government. The maximum deduction of rs 25,000 can be availed on investment of or above 50,000 in such listed equity shares ie. 50 % of such investment will be equal to or more than maximum deduction of rs. 25,000 hence, maximum deduction can be claimed.
To know more about eligible securities, conditions regarding new reatail investors and compiances. click here