Rajiv Gandhi Equity Savings Schemes

[sherlyk]

The specifications of this scheme are:

New investors with income below Rs 10 lakh can buy stocks up to Rs 25000 into direct equity market.
The scheme will have lock-in period of three years.
You get an income tax deduction of 50% of Rs.25000 (Rs 25000)
Hold this investment for one year to save a tax over above 80c deduction

Overview

Rajiv Gandhi Equity Savings Scheme (RGESS) is aimed at encouraging small investors to channelize their savings into domestic capital markets.

Under this scheme, a one-time deduction for income tax purposes will be available to a “new retail investor.” The new retail investor will be eligible for a deduction on the actual amount invested in ‘eligible securities’ in the first financial year, subject to maximum investment limit of Rs 50,000 under the newly introduced Section 80-CCG.

Quick Facts

Who can invest in RGESS?
New retail investors with an annual income of less than 10 lakhs

How much can I invest?
The maximum amount eligible for claiming benefit under RGESS is Rs. 50,000

Tax Benefit
Deduction u/s 80 CCG, is available on 50% of the amount invested. The benefit is in addition to deduction available u/s Sec 80C.

Lock-in Period
3 years. Fixed lock-in during first year followed by a flexible lock-in for subsequent two years.


Eligible securities

Eligible securities will include equity shares falling in the list of equity declared as “CNX-100” (by NSE) or “BSE-100” (by BSE); equity shares of public sector enterprises that are categorized as Maharatna, Navaratna or Miniratna by the Central Government.

Also, units of exchange-traded funds (ETFs) or mutual fund schemes with RGESS-eligible securities as underlying will be counted as eligible securities for investment.

Follow-on public offer of BSE-100 or CNX-100 and certain public sector enterprises, besides new fund offers of mutual funds, will also qualify as eligible securities.

Eligibility Criteria

The deduction will be available to a ‘new retail investor’ whose gross total income for the financial year, in which investments are made under the scheme, is less than or equal to Rs 10 lakh.

Any resident individual, who has not opened a demat account and has not made any transactions in the derivative segment as on the date of notification of the scheme, will fall under the definition of ‘new retail investor’.

Any, any individual who has opened a demat account before the scheme’s notification, but has not made any transactions in the equity segment or the derivative segment till the date of notification, will be considered as ‘new retail investor’


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[simba1211]

Thanks for Giving so many Info about Equity Schemes
Sbi a banking Institution has introduced Equity Funds,
Which look very beneficial To me to invest in.