Tax breaks for first-time investors in shares, mutual funds

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

22 September 2012 The flip side is that you can only claim the benefit once. "It's a one-time deduction," a partner at consulting firm Ernst & Young said.

So, from Monday, those who have a PAN and a demat account with no trades so far will be able to avail of the benefit provided that their taxable income is up to Rs 10 lakh. In addition, the maximum permitted investment is Rs 50,000 a year, and a 50% deduction available under the Income Tax Act will translate into a net gain of Rs 25,000 for someone who makes full use of the Rajiv Gandhi Equity Savings Scheme.

please explain above state in simple meaning for Rajiv Gandhi Eq,