Mr A, new retail investor has invested in listed equity share/units of equity oriented fund of Rajiv Gandhi Equity Savings Scheme. Calculate the amount of deduction u/s 80CCG for the following years.

Chapter No. 09 - Deduction u/s 80CCG

Previous year 2013-14:

Listed Equity shares: 15,000

Units of equity oriented fund: 45,000

Gross total income: 11,50,000.

The amount of deduction is 50% of (15,000 + 45,000) = 30,000 but restricted to 25,000

Previous year 2014-15:

Listed Equity shares: 42,000

Sale of all units of equity oriented fund purchased in P.Y 2013-14: 60,000

Gross total income: 11,75,000.

The amount of deduction is 50% of (42,000) = 21,000.

Amount liable to tax (on account of violation of condition): 50% of 45000 = 22,500

Previous year 2015-16:

Listed Equity shares: 30,000

Units of equity oriented fund: 12,000

Gross total income: 12,25,000.

The amount of deduction is NIL since Gross total income exceeds 12,00,000

Dated: 13-8-2015