Refund for investment in certain new shares or units

According to any plan mentioned in a clause, the amount of registration to such units may be subscribed for a term not to exceed six months from the closing of subscription in securities of the Central Government that may be approved by the Board in this regard. No deduction will be made for any units issued under the schemes mentioned in the next section if the subscription period for such schemes concludes after September 30th, 1990. If the assessee purchased any of the shares or units mentioned in this sub-section in a prior year and paid all or a portion of the amount, if any, due on those shares or units within six months of the end of that prior year, the amount so paid shall be considered to have been settled by the assessee toward the cost of those shares or units in the prior year.

Knowledge is just like an ocean, you can get here section 80g.

The deduction under that subclause shall only be allowed with reference to those shareholdings or units (being shares or units, the aggregate cost of which to the assessee does not exceed twenty-five thousand rupees) that are specifically identified by him in this regard when the aggregate cost to the taxpayer of the shares or units referred to in the preceding sub-section that is acquired by him in the prior year exceeds twenty-five thousand rupees.

"Eligible issuance of capital" refers to an equity share offering that meets the criteria listed below, specifically:-

(a) the issuance is entirely and solely for the purpose of carrying on the business of building, manufacturing, or production any object or thing, other than an article or thing included in the list in the Eleventh Schedule, and is made by a public company founded and registered in India;

(b) the issue is a capital issue that the firm is making for the first time. When a public company established and registered in India issues equity shares with the primary goal of conducting ship operating business, this provision is not applicable.

(c) the corporation makes an offer for a subscription towards the public to purchase the shares that make up the issue before the first day of April, 1991.

(d) such further requirements as may be prescribed. Issuance of equity shares issued by a firm that was initially established as a private company but later changed its status to a public corporation is not considered to be an eligible issue of capital in this circumstance. It is high time that you shall see the notes on 80g limit.