Organisation : Bombay Stock Exchange
Facility : Invest In Rajiv Gandhi Equity Scheme
Home Page : http://www.bseindia.com/rgess/index.htm
Download here : Form – A :https://www.statusin.in/uploads/1541-Form_A.pdf
Form – B : https://www.statusin.in/uploads/1541-Form_B.pdf
Form – C :https://www.statusin.in/uploads/1541-Form_C.pdf
Rajiv Gandhi Equity Savings Scheme :
The Scheme not only encourages the flow of savings and improves the depth of domestic capital markets,but also aims to promote an ‘equity culture’ in India.
Related : BSE Invest Stock Market : www.statusin.in/5198.html
This is also expected to widen the retail investor base in the Indian securities markets.
RGESS & Benefits :
** It provides additional tax benefits over and above the present tax savings schemes under the Income Tax Act.
** Gains, arising of investments in RGESS, can be realized after a year. This is in contrast to all other tax saving instruments.
** Investments are allowed to be made in installments in the year in which the tax claims are filed.
** The benefits can be availed for three consecutive years.
** Dividend payments are tax free.
** This scheme has a long run benefit of educating the retail investment segment and thereby moving towards financial inclusivity in the country.
** Success of this scheme can lead to transfer of assets from traditional savings instruments such as bank deposits and FDs to the capital markets, leading to diversification in retail investor portfolio and also leading to more productive “capital formation” assets.
Eligibility.
The deduction under the Scheme shall be available to a new retail investor who :-
** is a resident of India
** has a gross total income for the financial year less than or equal to Rs. 12 Lakh. In 2013-14, the income ceiling of the beneficiaries was raised to Rs. 12 lakh from Rs. 10 lakh specified in 2012-13.
** complies with all the other conditions of the Scheme
Procedure for Investment
A new retail investor can make investments under the Scheme in the following manner :
** Open a demat account with a broker.
** An investor can invest in eligible securities in one or more transactions during the year in which the deduction has to be claimed.
** An investor can make any amount of investment in the demat account but the amount eligible for deduction, under the Scheme will not exceed fifty thousand rupees.
** The eligible securities brought into the demat account, as declared or designated by the new
** An investor will be eligible for a deduction under subsection (1) of section 80CCG of the Act in respect of the actual amount invested in eligible securities , in the first financial year in respect of which a declaration in Form B has not been made, subject to the maximum investment limit of fifty thousand rupees.
** An investor who has claimed a deduction under sub- section (1) of section 80CCG of the Act, in any assessment year, will not be allowed any deduction under the Scheme for any subsequent assessment year;