Inflow of funds in the equity markets is welcomed by governments as it gives a boost to industries in various sectors. Government also gives some tax incentives to such investments. In this article we will discuss these tax exemptions and the conditions when these exemptions can be claimed.
Amount invested in Equity Saving Scheme is available for deduction from tax at the rate of 50% of the amount invested. This scheme is known as Rajiv Gandhi Equity Savings Scheme (RGESS). The deduction is available under section 80CCG. The Maximum ceiling of investments is up to Rs. 50,000/-. Following are some conditions which should be satisfied to claim these deductions:
The deduction is allowed for three consecutive years beginning with the assessment year in which the deduction was first claimed.
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