Under the existing
provisions of section 80CCG, deduction for three consecutive assessment years
is allowed upto Rs. 25,000 to a resident individual for investment made in
listed equity shares or listed units of an equity oriented fund subject to
fulfilment of certain conditions. This deduction was introduced vide Finance
Act, 2012.
However considering the
fact that 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 assessment year 2018-19.
However, an assessee who
has claimed deduction under this section for 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 apply
from 1st April 2017 and apply in relation to previous year 2017-18.
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