• Sanskar Garg

Sec 80CCB of Income Tax Act, 1961: Deduction in respect of investment under Equity Linked Saving.

Updated: Oct 17

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Deduction against investment made under Equity Linked Savings Scheme is available under section 80CCB of Chapter VIA. The assessee can claim deductions from Gross Total in respect of payments.

Eligible Assessee : Individual and HUF

Exemption limit : Maximum deduction allowed ₹ 10,000.

Conditions for exemption :

  • Units of any Mutual Fund listed under clause (23D) of section 10 or of the Unit Trust of India established under the Unit Trust of India Act, 1963 (52 of 1963) were acquired by HUFs or Individuals in the previous tax year out of their taxable income under any plan or in accordance with any scheme that the Central Government may, by notification in the Official Gazette, specify in this regard.


Exception : No deduction shall be allowed in relation to any amount invested under this subsection on or after the 1st day of April, 1992.


Taxability/cancellation of exemption :

  • Where any amount invested by the assessee in the units issued under a plan formulated under the Equity Linked Savings Scheme in respect of which a deduction has been allowed, is returned to him in whole or in part either by way of repurchase of such units or on the termination of the plan, by the Fund or the Trust, in any previous year, it shall be deemed to be the income of the assessee of that previous year and chargeable to tax accordingly.

Where Partition has taken place among the members of a Hindu undivided family or where an association of persons has been dissolved after a deduction has been allowed, it shall be deemed to be the income of the person of that previous year and chargeable to tax accordingly.

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