Feb 07, 2013 12:18 PM IST | Source: Moneycontrol.com

Understanding Rajiv Gandhi Equity Saving Scheme

In the Union Budget 2012- 13, the Finance Minister introduced a new scheme called - Rajiv Gandhi Equity Saving Scheme with dual benefits of understanding and investment in Select Equities and also enjoying tax benefits for select investors. Read this space to know the key highlights of the scheme.

Understanding Rajiv Gandhi Equity Saving Scheme

In the Union Budget 2012- 13, the Finance Minister introduced a new scheme called - Rajiv Gandhi Equity Saving Scheme with dual benefits of understanding and investment in Select Equities and also enjoying tax benefits for select investors. The highlights of the schemes are.

a) Benefit of this Scheme is available for “new retail investor”.

“New Retail Investor” means:

i. Any individual who has not opened Demat account or

ii. Any individual who has opened Demat account but not made any transaction till the date of notification of scheme.

b) The deduction under this Scheme shall be available to individual investor whose Gross total income for the financial year is less than or equal to Rs. 10,00,000.

c) Maximum Investment Amount: Rs.50,000. Further, Investment can be made in eligible securities in more than one transaction.

d) Deduction Allowed: 50% of Investment amount.

e) Existing demat account holder shall submit a declaration in “Form A” to the depository Participant.

f) There will lock in period of 3 year in which 1 year will be fixed lock in period. During the lock in period they are not permitted to pledge or hypothecate any eligible securities. Further, in fixed lock in period investor cannot sell the shares.

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