Section 80CCG of Income Tax Act "Deduction in respect of investment made under an equity savings scheme"
80CCG. (1) Where an assessee, being a resident individual, has, in a previous year, acquired listed equity shares or listed units of an equity oriented fund in accordance with a scheme, as may be notified by the Central Government in this behalf, he shall, subject to the provisions of sub-section (3), be allowed a deduction, in the computation of his total income of the assessment year relevant to such previous year, of fifty per cent of the amount invested in such equity shares or units to the extent such deduction does not exceed twenty-five thousand rupees.
(2) The deduction under sub-section (1) shall be allowed
in accordance with, and subject to, the provisions of this
section for three consecutive assessment years, beginning
with the assessment year relevant to the previous year in
which the listed equity shares or listed units of equity
oriented fund were first acquired.
(3) The deduction under sub-section (1) shall be subject to
the following conditions, namely:-
(i) the gross total income of the assessee for the relevant
assessment year shall not exceed twelve lakh rupees;
(ii) the assessee is a new retail investor as may be
specified under the scheme referred to in sub-section (1);
(iii) the investment is made in such listed equity shares or
listed units of equity oriented fund as may be specified
under the scheme referred to in sub-section (1);
(iv) the investment is locked-in for a period of three years
from the date of acquisition in accordance with the scheme
referred to in sub-section (1); and
(v) such other condition as may be prescribed.
(4) If the assessee, in any previous year, fails to comply
with any condition specified in sub-section (3), the
deduction originally allowed shall be deemed to be the
income of the assessee of such previous year and shall be
liable to tax for the assessment year relevant to such
previous year.
(5) Notwithstanding anything contained in sub-sections (1)
to (4), no deduction under this section shall be allowed in
respect of any assessment year commencing on or after the
1st day of April, 2018 :
Provided that an assessee, who has acquired listed equity
shares or listed units of an equity oriented fund in
accordance with the scheme referred to in sub-section (1)
and claimed deduction under this section for any assessment
year commencing on or before the 1st day of April, 2017,
shall be allowed deduction under this section till the
assessment year commencing on the 1st day of April, 2019, if
he is otherwise eligible to claim the deduction in
accordance with the other provisions of this section.
Explanation.-For the purposes of this section, "equity
oriented fund" shall have the meaning assigned to it in the
Explanation to clause (38) of section 10.