Deduction reversal under the equity savings scheme: non compliance converts claimed deduction into taxable income. Non compliance by a new retail investor renders the section 80CCG deduction taxable in the year of failure. For demat accounts failing flexible lock in conditions, if the portfolio corresponds to one assessment year that year's deduction is taxed; if it spans two years, taxation depends on whether the portfolio value for 270 days meets thresholds relative to the claimed values, resulting in taxation of the deduction for one year or the aggregate for both. After charging tax, the remaining required portfolio value must equal or exceed the original claimed value less the value charged to tax.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Deduction reversal under the equity savings scheme: non compliance converts claimed deduction into taxable income.
Non compliance by a new retail investor renders the section 80CCG deduction taxable in the year of failure. For demat accounts failing flexible lock in conditions, if the portfolio corresponds to one assessment year that year's deduction is taxed; if it spans two years, taxation depends on whether the portfolio value for 270 days meets thresholds relative to the claimed values, resulting in taxation of the deduction for one year or the aggregate for both. After charging tax, the remaining required portfolio value must equal or exceed the original claimed value less the value charged to tax.
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