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Clarifications on section 80ccg

Tax planning 2686 views 2 replies

Kamlesh Kumar Agarwal

Consultant

25 Points Posted on 06 June 2012

Hi,

I have extensively googled but still not able to find an answer.

Please let me know whether the deduction of 25K u/s 80CCG is above the deductions under section 80C.

i.e 25,000(8oCCG) + 100,000(80C) = 1.25L

2nd - what is the definition of new investor. let say I have been investing in MF's, am i eligible.

Thanks

Kamlesh

Replies (2)

Basavaraj

B.Com FCA

193 Points Posted on 06 June 2012

Hi,

first, the deduction under section 80ccg is not included in the limit of 1 lakh. because as per section 80CCE The aggregate amount of deductions under section 80C, section 80CCC and ³⁷[sub-section (1) of section 80CCD] shall not, in any case, exceed one lakh rupees.]

The term new retail investor means that you have to make new investment in the Scheme as notified by Central Government for the purpose of This section.

Kamlesh Kumar Agarwal

Consultant

25 Points Posted on 06 June 2012

So it means that apart from 1L in 80C, I can also invest 50,000 in RGESS u/s 80CCG and get an additional deduction of 25,000. thereby a total of 1.25 L combining both 80C and 80CCG..