Earn interest up to 7.75% p.a. by investing in a Bajaj Finance Fixed Deposit | Rated CRISIL AAA/ STABLE and [ICRA]AAA(stable)

DISCLAIMER: Tax Deduction under section 80CCG has been discontinued since April 1, 2017

What is Section 80CCG?

Section 80CCG of the Income Tax Act, 1961 has provisions for tax deductions to taxpayers who invest in the equity market in India. This section of the Income Tax Act was added to encourage taxpayers to invest their money into equities, driving up investment through 80CCG deduction. Section 80CCG provides tax deductions to individuals who are looking to make their first-ever investment into equities.

Section 80CCG is also known as the Rajiv Gandhi Equity Savings Scheme. It was introduced with the aim of helping people develop a habit of investing their income for a financially secure future, while at the same time increasing the level of investment into the Indian economy. Section 80CCG has been discontinued since April 1, 2017.

Eligibility Criteria for Section 80CCG

The following is the eligibility criteria for Section 80CCG of the Income Tax Act, 1961. Only individuals who fall in any of the below-given categories can avail income tax deductions under Section 80CCG:


  1. Only individuals making their first-ever investment can claim 80CCG deductions.

  2. The first-time investor’s gross total income cannot exceed more than ₹12,00,000 per annum.

  3. Investments that are listed as equity shares or investments into equity-oriented funds and schemes will qualify for tax deductions under Section 80CCG. Stocks that are listed under the BSE 100 and public sector undertaking stocks along with ETF and Mutual Funds are also eligible for tax deductions under this section. Other types of investments are not covered under Section 80CCG and will not be eligible for a tax deduction.

  4. The investments made must be locked in for at least 3 years.

Section 80CCG Deductions and Limit

The following is the list of income tax deductions and their limits under Section 80CCG:


  1. First-time investors can get a tax deduction of up to 50% on their first-ever investments.

  2. The tax deduction can be availed on an investment of maximum ₹50,000.

  3. Essentially, first-time investors can get a 50% tax deduction on a maximum of ₹50,000, meaning their maximum tax deduction will amount to ₹25,000.

Frequently Asked Questions

  • ✔️What comes under Section 80CCG?

    Section 80CCG of the Income Tax Act, 1961 has provisions for first-time investors to get a tax deduction on their first-ever investments. Popularly known as the Rajiv Gandhi Equity Savings Scheme, this section provides a 50% tax deduction on a maximum investment of ₹50,000. It should be noted that Section 80CCG has been discontinued since 2017.  

  • ✔️What is the Section 80CCG deduction limit?

    Under Section 80CCG, an individual can claim a tax deduction for a maximum of ₹50,000 investment. However, only 50% tax deduction is provided on this ₹50,000, which brings down your maximum tax deduction to ₹25,000.

  • ✔️How can I claim deduction under Section 80CCG?

    When Section 80CCG was active, you could claim a tax deduction on your investment at the time of filing your income tax returns. However, since the section has been discontinued, the tax deduction is not available anymore.  

  • ✔️Why was Section 80CCG discontinued?

    Section 80CCG of the Income Tax Act, 1961 was discontinued at the Union Budget meeting of 2017 due to the lack of investment under this scheme.

Happy Customers of Bajaj Markets

Getting a loan to take care of my wedding and relieving my parents to enjoy the occasion was the best decision I ever made. Easy-to-apply, amazing interest rate and quick disbursal, what more can one ask for!

I am passionate about the vehicle I drive and hence I wan't to protect it with the best available option. What amazed me about Bajaj Markets was full transparency, quick quotes and the attractive discount on the premium while choosing annual payment option!

Check your personal loan eligibility in seconds!

My husband and I will finally move into our own house this Diwali. All thanks to Bajaj Markets, with competitive interest rates, minimal processing fees and easy to repay EMIs, our dream saw the light of reality in no time!

Get the best FD interest rates starting @ 8.40%. Let's start!

Kids grow up fast and to fulfill their dream trip to Disneyland I had everything but instant funds. With no collateral or guarantor required and a hassle-free processing, I gifted my family a memorable trip to Paris just at the click of a mouse!

Get sum insured up to 1 Crore! Let's start!

The best way to start looking for health insurance is not a 60 minute meeting with an insurance sales person but with a close study of my coverage needs and checking the insurance company's claim ratio. No unnecessary jargons, easy to apply claims process and choice of premiums, what else could I have asked for as a newbie!

Zero additional charge on part-payment option on Business loans! Let's start!

I bought my first iPhone using my Bajaj Finserv EMI Network Card. Zero downpayment, No cost EMI on Bajaj Markets EMI store and the smile on my dad's face just made my day!

Get home loan sanctioned online in 72 hours! Let's start!