Procedure to invest in Rajiv Gandhi Equity Savings Scheme (RGESS) ?
satya (Executive Excise) (1839 Points)
08 November 2012satya (Executive Excise) (1839 Points)
08 November 2012
CA Pooja Agarwal
(Chartered Accountant)
(3228 Points)
Replied 08 November 2012
The scheme is exclusively for first time retail investors with annual income of below Rs 10 lakh. The maximum investment permissible under the scheme is Rs 50,000 and the investor would get a 50% deduction of the amount invested from the taxable income for that year.(u/s 80 CCG)
Investments made in top-100 listed stocks (BSE 100 and CNX 100) and public sector undertakings (Navratnas, Maharatnas and Miniratnas) would be eligible under the scheme. ETFs and MFs with these stocks as underlying will only be eligible.
In order to help achieve the disinvestment target, the government has said investments in follow-on public offerings (FPO) of the above companies and initial public offerings (IPOs) of PSUs with an turnover of more than Rs 4,000 crore would also be eligible under this scheme.
The scheme will be only open to new retail investors , who will be identified on the basis of their PAN numbers. First-time investors who have opened their demat accounts but have not transacted yet will also be eligible.
Similar to other tax-saving schemes, investments through RGESS also will have a three year lock-in but investors will be allowed to trade in the securities after the first year.
Investors would, however, be required to maintain their level of investment during these two years at the amount for which they have claimed income tax benefit or at the value of the portfolio before initiating a sale transaction, whichever is less, for at least 270 days in a year.
The government has said that the tax benefit will be withdrawn if an investor fails to meet the conditions stipulated for the scheme.
25 Hours GST Scrutiny of Return and Notice Handling(With Recording)