80ccg

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 January 2013 as per section 80CCG, to avail that benefit one of the condition is that gross total income should not be more than 10lakhs. is it includes the agricultural80 income?

Querist : Anonymous

Querist : Anonymous (Querist)

17 January 2013 how to identify that assessee is the new retail investor?

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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14 July 2024 Section 80CCG of the Income Tax Act, 1961, provides for a deduction in respect of investment made under an Equity Savings Scheme (ESS). This deduction is available to "new retail investors" whose gross total income does not exceed a specified limit and who fulfill certain other conditions. Here’s how these conditions are typically interpreted:

### Conditions for availing deduction under Section 80CCG:

1. **Gross Total Income Limit:**
- The gross total income of the individual should not exceed Rs. 12 lakhs for the relevant assessment year in which the investment is made.

2. **Agricultural Income:**
- Agricultural income is generally excluded from the computation of total income for the purpose of income tax. However, for determining eligibility under Section 80CCG, agricultural income is considered as part of the gross total income.
- Therefore, when assessing whether the gross total income exceeds Rs. 12 lakhs, agricultural income should be included.

3. **New Retail Investor:**
- A "new retail investor" is defined as an individual who has not:
- Purchased any equity shares in a company before the specified date (for the purpose of the scheme), or
- Derives benefit under any other scheme notified by the Central Government.
- This is typically verified by the investor’s declaration and certification by the depository where the investor has a demat account.

### Identification of New Retail Investor:

To identify whether an individual qualifies as a new retail investor:

- **Declaration:** The individual needs to self-declare that they are a new retail investor and have not previously invested in equity shares.
- **Depository Certification:** The depository (where the investor holds a demat account) certifies the status of the investor based on their records.

### Conclusion:

- **Agricultural Income:** Yes, agricultural income is included in the computation of gross total income for determining eligibility under Section 80CCG.
- **New Retail Investor:** Identification is based on self-declaration by the investor and certification by the depository.

If you are considering availing of deduction under Section 80CCG, ensure that you meet all the eligibility criteria and maintain the necessary documentation to substantiate your claim. Consulting with a tax advisor can provide tailored guidance based on your specific circumstances.

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