Personal Finance Blog India –

Outline Of Rajiv Gandhi Equity Saving Scheme:

Rajiv Gandhi Equity Saving Scheme – Govt announced new concept of tax saving to attract the retail investors in budget for the year 2012 -2013 and few outlines of the same have declared recently.

Of course, there is confusion about number of points and will be cleared with the time.

Important Features of Rajiv Gandhi Equity Saving Scheme:

  1. Only individual investors can invest through this scheme.NRIs or HUFs will not able to invest through this scheme.
  2. This scheme is applicable for individuals having taxable income up to Rs. 1o lakh only.
  3. New investors can only participate through this scheme – Definition of new investor is not known exactly.
  4. Tax benefit will be available through  U/S 80 CCG.Means deduction will be available of  50% of the investment.Max limit of investment through this scheme is Rs 50,000/- so investors can claim deduction of Rs.25,000/- for investment of Rs.50000/-.
  5. Investors can invest in selected shares,mutual funds,ETFs.
  6. There is lock in period of 3 yrs,but investor can sell the shares after completion of one year and need to invest in the allowed scripts.Otherwise tax benefit benefit will be reversed.
Following scripts are allowed through Rajiv Gandhi Equity Saving Scheme:
  • Shares listed under BSE 100.
  • Shares listed under CNX 100.
  • Shares of Navratna,Maharatna status companies through secondary market as well from FPOs.
  • Shares of other selected Govt firms.
  • Mutual Fund units / ETFs having exposure in above mentioned scripts.

Would You Like To Participiate :

Till there is very less clarity about this scheme.Any investor can claim maximum deduction upto Rs.25000/- which will result in tax saving of max upto Rs. 5000/- [considering 20% tax bracket] and to save Rs 5000/- tax ,,would you like to invest in few selected scripts ?Is it feasible for you to invest in shares to save tax? Would you like to take that risk for tax saving of Rs.5000/- only?? What do you think about it???

Category: Mutual Funds

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