Rationalization of deduction under section 80CCG.
Under the existing provisions of section 80CCG, the deduction for three consecutive assessment years is allowed up to Rs. 25,000 to a resident individual for the investment made in listed equity shares or listed units of an equity oriented fund subject to fulfillment of certain conditions. This deduction was introduced vide Finance Act, 2012.
However, considering the fact that a limited number of individuals availed this deduction and also to rationalize the multiplicity of deductions available under Chapter VI-A of the Act,
it is proposed to phase out this deduction by providing that no deduction under section 80CCG shall be allowed from the assessment year 2018-19.
However, an assessee who has claimed deduction under this section for the assessment year 2017-18 and earlier assessment years shall be allowed deduction under this section till the assessment year 2019-20 if he is otherwise eligible to claim the deduction as per the provisions of this section.
This amendment will take effect from the 1st April 2018 and shall accordingly apply in relation to the assessment year 2018-19 and subsequent years.
