Section 80CCG
Deduction in respect of investment made under an equity savings scheme (RGESS)
Quick Answer
Section 80CCG (Deduction in respect of investment made under an equity savings scheme (RGESS)) has been deleted under the Income-tax Act, 2025, effective 1st April 2026.
What changed for Section 80CCG
The starting point is Section 80CCG of the Income Tax Act, 1961 — deduction in respect of investment made under an equity savings scheme (RGESS). Provided a 50% deduction (up to Rs. 25,000) for first-time retail investors investing in specified equity shares or mutual funds under the Rajiv Gandhi Equity Savings Scheme.
The Income-tax Act, 2025 does not retain Section 80CCG: it is deleted with effect from 1st April 2026, so no equivalent section replaces it. NA. Scheme was phased out due to low adoption and complexity.
On the ground, changes to Section 80CCG carry a Low impact. Archival value.
Sec 80CCG
Provision Summary
Provided a 50% deduction (up to Rs. 25,000) for first-time retail investors investing in specified equity shares or mutual funds under the Rajiv Gandhi Equity Savings Scheme.
Deleted
Provision Summary
NA. Scheme was phased out due to low adoption and complexity.
Key Changes & Highlights
- Phased out entirely.
Frequently Asked Questions
What does Section 80CCG of the Income Tax Act 1961 deal with?
Section 80CCG of the Income Tax Act, 1961 covers deduction in respect of investment made under an equity savings scheme (RGESS). Provided a 50% deduction (up to Rs. 25,000) for first-time retail investors investing in specified equity shares or mutual funds under the Rajiv Gandhi Equity Savings Scheme.
Does Section 80CCG survive under the Income-tax Act, 2025?
Section 80CCG has been deleted under the Income-tax Act, 2025, with no successor section carrying it forward from 1st April 2026. NA. Scheme was phased out due to low adoption and complexity.
Why does the change to Section 80CCG matter for taxpayers?
The transition impact for Section 80CCG is rated Low. Archival value.
What are the key changes to Section 80CCG under the Income-tax Act, 2025?
Phased out entirely. These points are specific to Section 80CCG (Deduction in respect of investment made under an equity savings scheme (RGESS)).
Disclaimer: This mapping of Section 80CCG (Deduction in respect of investment made under an equity savings scheme (RGESS)) under the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 80CCG is currently marked Deleted, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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