Sec. 80ccg rajiv gandhi

Tax planning 1350 views 4 replies

Pawan Mittal

CA Final

711 Points Joined July 2012

Dear Experts

As per sec. 80CCG if a new retail investor whose gross total income for the relevant assessment year does not exceed Rs. 12 lakh will be allowed 50% deduction subject to maximum limit of Rs. 25000. Deduction under this section shall be allowed for 3 consecutive assessment years.

Now my question is:

1. Whether an investor who is already having d-mat account can avail this benefit by opening a new d-mat account?

2. If a person invests Rs. 50000 only once than will he be eligible for deduction of Rs. 25000 for 3 consecutive years without makint further investment in the subseding years. I mean just by investing Rs. 50000 once will an investor get benefit of Rs. 25000*3= 75000.

Replies (4)

sahil jain

Practice

110 Points Joined May 2009

Hi Pawan

Find your answer here:

https://www.logiko.co/forum/showthread.php?tid=27

CA Gaurav Choradia

Relationship Manager

418 Points Joined August 2009

Hi Pawan,

1) if you had a demat a/c but not yet traded ever than you can avail the benefit of Sec 80CCG. but if u had traded in earlier or even you have closed that demat a/c or open a new a/c, you cannot avail the deduction u/s 80CCG. Here new investor means Totaly new who going to enter in market first time.

2) deduction for 3 year means if you have invested 20000 in 1st year than Remaining 30000 benefit can be availed in next 2 years.
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Pawan Mittal

CA Final

711 Points Joined July 2012

But this scheme is violating the right of equality. Two taxpayers are there. Both are paying taxes. But one who has traded in stock market anytime, cannot avail the benefit of sec. 80CCG and on the other hand the other person who has not traded in stock market can avail the benefit of sec. 80CCG.

That means if a person has traded in stock market, he has committed a mistake and he will get the punishment in the form of not getting the deduction.