Taxation: Know everything about Section 80CCG and 80EE

Section 80CCG Investment in notified Equity Saving Scheme

Deduction is available u/s  80CCG is available for 3 consecutive years to resident  individual, being a new retail investor having gross total income of 12 lakhs, for investment in listed equity shares as well listed  units of equity oriented as per notified scheme.

The deduction is 50% of investment subject to maximum of Rs 25000/- subject to following conditions:

His gross total income does not exceed 12 lakhs(prior to Financial Act 2013, the limit was 10 lakhs)

He has acquired listed shares in accordance with a notified scheme.

The assessee  is a new retail investor as specified in the above notified scheme and the investment made is locked-in for a period of 3 years from the date of acquisition as per the scheme.

He satisfies any other condition as may be prescribed.

Section 80EE Interest on loan taken for Residential House Property

Eligible Assessee: Individual(Resident/Non-Resident)

1.       Deduction  is allowed in respect of interest payable on loan taken for acquisition(construction and purchase) of House Property.

2.       Amount of Deduction

a)      Maximum deduction of Rs. 100000 is allowed.

b)      If interest payable is less than 100000 in A.Y. 2014-15, then deduction for balance deduction shall be claimed in A.Y. 2015-16.

3.       Condition for claiming deduction:-

a)      Loan is sanctioned by financial institution in P.Y. 2013-14.

b)      The amount of loan does not exceed 25 lakh.

c)       The value of house property  is up to 40 lakh.

d)      No house property is owned by assessee on the date of sanction of loan.