Rajiv Gandhi Equity Savings Scheme (RGESS) set for launch

RGESS (Rajiv Gandhi Equity Savings Scheme)

The finance ministry is set to notify the Rajiv Gandhi Equity Savings Scheme (RGESS).

  • Finance Minister P Chidambaram had approved the RGESS on September 21, 2012.
  • Implementation delayed due to the deliberations on inclusion of Mutual Funds (MF) in it. Thus, further consultations with the RBI, SEBI and the law ministry on the coverage of RGESS.

  • It might be so that only MFs fitting in specific conditions would be allowed.
  • Tax benefits for investing up to Rs 50,000 in the capital markets for first-time retail investors with an annual income of Rs 10 lakh.
  • The scheme initially announced in Budget 2012 had allowed tax benefits for investments in stocks. Later, Exchange Traded Funds (ETFs) and MFs were included under its ambit.
  • Open to retail investors who have opened demat accounts but have not made any transactions in equity or derivatives till the notification of the scheme.
  • All those opening fresh accounts would also be eligible to participate in RGESS.
  • Investments can be made in various installments during a year,
  • Total lock-in period: 3 years, including an initial lock-in of one year in the stock/ETF/MF in which the money has been invested.
  • Stocks listed under BSE 100 or CNX 100 or those of PSUs which are Navratnas, Maharatnas and Miniratnas would be eligible.
  • Investment in follow-on offers of these companies would also be eligible for tax deduction.

Advertisement

Month:

Categories: Banking Current Affairs 2018India Current Affairs 2018

Tags:

advertisement

Comments