The existing provisions
of section 80CCG, inter-alia, provide that a resident individual who has
acquired listed equity shares in accordance with the scheme notified by the
Central Government, shall be allowed a deduction of fifty per cent of the
amount invested in such equity shares to the extent that the said deduction does
not exceed twenty five thousand rupees.
The deduction is a one-time deduction and is
available only in one assessment year in respect of the amount so invested. The
deduction is available to a new retail investor whose gross total income does
not exceed ten lakh rupees. Rajiv Gandhi Equity Savings Scheme has been
notified under section 80CCG.
With a view to liberalize the incentive
available for investment in capital markets by the new retail investors, it is
proposed to amend the provisions of section 80CCG so as to provide that
investment in listed units of an equity oriented fund shall also be eligible
for deduction in accordance with the provisions of section 80CCG. It is
proposed to provide that “equity oriented fund” shall have the meaning assigned
to it in clause (38) of section 10.
It is further proposed to provide that the
deduction under this section shall be allowed for three consecutive assessment
years, beginning with the assessment year relevant to the previous year in
which the listed equity shares or listed units were first acquired by the new
retail investor whose gross total income for the relevant assessment year does
not exceed twelve lakh rupees.
