Section 80CCG is commonly known as the Rajiv Gandhi Equity Savings Scheme. It is a tax-saving scheme which came into effect post the 2012-2013 Union Budget of India. As per the scheme, first time retail investors are entitled to tax benefits.
The purpose of the scheme is to increase the savings for investors who invest into the domestic capital market.
Since 1st April 2017, the scheme has been phased out completely due to lack of adoption.
Section 80CCG of the Income Tax Act
In order to increase the investment in securities, a first-time investor is allowed a deduction on their equity investment under Section 80CCG of the Income Tax Act, 1961. This is over and above the deductions available under Section 80C of the Income Tax Act, 1961.
