Investment Eligible under Section 80CCG

Section 80CCG is a facility available in the Income Tax Act which provides deductions to taxpayers who have invested money in the approved investments. Taxpayers should note that a deduction under Section 80CCG is available only for those who have invested money in the approved investments prior to 31.03.2018. Thus, no fresh investments can be made under this section. Further, the Rajiv Gandhi Equity Savings Scheme also has been discontinued with effect from AY 2017-18. Income Tax deductions of up to Rs.1.5 lakh can be claimed by taxpayers under Section 80C and Section 80CCG. In this article, we look at investments eligible for deduction under Section 80CCG:

Important Update

Deduction under Section 80CCG has been discontinued since 1st April 2017. There are no longer any tax benefits available under this section.

What is Section 80CCG?

Section 80CCG, also known as the Rajiv Gandhi Equity Saving Scheme, was an Indian program that offered tax breaks to encourage first-time investors in the stock market. It allowed a deduction of up to 50% of the invested amount, with a maximum of Rs. 25,000, on investments in specific stocks or mutual funds. However, this scheme was discontinued in April 2017.

Eligibility criteria under Section 80CCG

Deduction under section 80CCG is admissible subject to the following conditions.

The gross total income of the assessee for the relevant assessment year should not exceed twelve lakh rupees.
The assessee is a new retail investor as may be specified under the scheme.
The investment is made in such listed equity shares or listed units of equity-oriented funds as may be specified under the scheme.
In accordance with the scheme, the investment is locked in for three years from the date of acquisition.

Investments Eligible under Section 80CCG

Equity shares falling in the list of securities declared as BSE-100 or CNX-100 will be eligible for Section 80CCG deduction. Also, public sector enterprises (PSUs) ' equity shares, categorised as Maharatna, Navratna or Miniratna by the Central Government, are eligible. Finally, units of Exchange Traded Funds (ETFs) or Mutual Fund (MF) schemes which have securities eligible under Rajiv Gandhi Equity Savings Scheme (RGESS) as underlying constituents are eligible for section 80CCG deduction, provided they are listed and traded on a stock exchange and settled through a depository mechanism.

Equity Investment in Maharatha

Investments in the following Public Sector Undertakings (PSUs) identified as Maharatnas are eligible for Section 80CCG Deduction:

BHARAT HEAVY ELECTRICALS LTD.
COAL INDIA LTD.
GAIL (INDIA) LTD.
INDIAN OIL CORP.LTD.
NTPC LTD.
OIL & NATURAL GAS CORP.LTD.
STEEL AUTHORITY OF INDIA LTD.

Equity Investment in Navratna

Investments in the following PSUs identified as Navratna are eligible for Section 80CCG Deduction:

BHARAT ELECTRONICS LTD.
BHARAT PETROLEUM CORP.LTD.
CONTAINER CORP.OF INDIA LTD.
ENGINEERS INDIA LTD.
HINDUSTAN AERONAUTICS LTD.
HINDUSTAN PETROLEUM CORP.LTD.
MAHANAGAR TELEPHONE NIGAM LTD.
NATIONAL ALUMINIUM CO.LTD.
NBCC (INDIA) LTD.
NLC INDIA LTD.
NMDC LTD.
OIL INDIA LTD.
POWER FINANCE CORP.LTD.
POWER GRID CORP.OF INDIA LTD.
RASHTRIYA ISPAT NIGAM LTD.
RURAL ELECTRIFICATION CORP.LTD.
SHIPPING CORP.OF INDIA LTD.

Investments in Miniratnas

Investments in the following PSUs identified as Miniratnas are eligible for Section 80CCG Deduction:

Investment in ETFs and Mutal Funds

Listing of Units of IDFC SENSEX ETF a scheme from IDFC Mutual Fund, eligible under RGESS
LIC NOMURA MF Exchange Traded Fund- NIFTY 100
Listing of Units of HDFC Nifty ETF a scheme under HDFC Mutual Funds
Listing of Units of LIC Nomura MF ETF - NIFTY 50- Growth Plan under LIC Nomura Mutual Fund
Listing of Units of Birla Sun Life Focused Equity Fund - Series 6
Listing of Units of HDFC Mutual Fund – HDFC Focused Equity Fund Plan B
BIRLA SUN LIFE FOCUSED EQUITY FUND- SERIES 6-REGULAR PLAN- GROWTH
Goldman Sachs Banking Index Exchange Traded Scheme (GS Bank BeES)
RELIANCE R* SHARES NV20 ETF
Birla Sun Life Focused Equity Fund - Series 5 - Regular Plan - Dividend Payout
Birla Sun Life Focused Equity Fund - Series 5 - Direct Plan-Growth
LIC NOMURA Mutual Fund Asset Management CO LTD#LIC NOMURA MF-LIC NOMURA MF RGESS SR 3-DIR PL-GROWTH
LIC NOMURA Mutual Fund Asset Management CO LTD #LIC NOMURA MF-LIC NOMURA MF RGESS SR 3-DIR PL-DIV PAY
Birla Sun Life Focused Equity Fund - Series 3- Regular Plan-Growth
Birla Sun Life Focused Equity Fund - Series 3 - Regular Plan - Dividend Payout
HDFC Focused Equity Fund Plan A - Direct Option- Growth Option
HDFC Focused Equity Fund Plan A - Direct Option- Dividend Option
Sundaram Top 100 Series-V (RGESS) Regular Growth
Sundaram Top 100 Series-V (RGESS) Regular Dividend Payout
LIC Nomura Mf Rajiv Gandhi Equity Savings Scheme- Series 3-Dividend-Dividend Payout
LIC Nomura Mf Rajiv Gandhi Equity Savings Scheme- Series 3-Growth-Growth
Sundaram Top 100 Series IV (RGESS) Regular Plan-Growth Option
Sundaram Top 100 Series IV (RGESS) Regular Plan Dividend Option
SENSEX Prudential ICICI Exchange Traded Fund
Sundaram Top 100 Series III (RGESS) Regular Plan-Growth Option
Sundaram Top 100 Series III (RGESS) Regular Plan Dividend Option
IDBI Mutual Fund – IDBI Rajiv Gandhi Equity Savings Scheme-Series I Plan A
LIC Nomura MF RGESS Fund Series- I
LIC Nomura MF RGESS Fund Series- 2
HDFC Rajiv Gandhi Equity Savings Scheme – Series 1-February 2013
Birla Sun Life Rajiv Gandhi Equity Savings Scheme – Series 1
HDFC Rajiv Gandhi Equity Savings Scheme – Series 2
Birla Sun Life Mutual Fund
Birla Sun Life Focused Equity Fund
Birla Sun Life Focused Equity Fund-Series 2-Direct Plan-Dividend Payout
Birla Sun Life Focused Equity Fund-Series 2-Direct Plan-Growth
Birla Sun Life Focused Equity Fund-Series 2-Regular Plan-Dividend Payout
Birla Sun Life Focused Equity Fund-Series 2-Regular Plan-Growth
ICICI Prudential Equity Savings Fund Series 1-Direct Plan Dividend
ICICI Prudential Equity Savings Fund Series 1-Direct Plan Cumulative 5
ICICI Prudential Equity Savings Fund Series 1-Regular Plan Dividend
ICICI Prudential Equity Savings Fund Series 1-Regular Plan Cumulative
ICICI Prudential CNX 100 ETF
ICICI Prudential Nifty ETF
SBI SENSEX ETF
R* Share Shariah BeES
R* Share Junior BeES
R* Share Nifty BeES
Motilal Oswal MOSt Shares M50 ETF (MOSt Shares M50)
Quantum Index Fund - Exchange Traded Fund ETF
Kotak SENSEX ETF
CPSE ETF
Kotak Nifty ETF