In Budget 2012 (For the year 2012-13) , for those with less than Rs. 10 lakh income, a new tax deduction was introduced for direct equity investments. Under the RGESS, investor will be able to claim 50% of their investments in direct equity up to the maximum investment limit of Rs. 50,000. The investment is subject to a lock in period of 3 years, similar to the current ELSS (Equity linked saving schemes).
The modalities of the scheme are not yet specified, and further details are still awaited. A retail investor can avail the scheme only once in a life time. This is the first ever tax benefit scheme announced by the central government to encourage retail investors participation in the equity market.
To minimise risk associated with direct stock investment for new investors, SEBI (Securities and Exchange Board of India) has asked the central government to route tax-saving RGESS (Rajiv Gandhi Equity Savings Scheme) through MF (mutual fund).
Recently, the market regulator SEBI has submitted a proposal in this regard to the finance ministry.
According to SEBI, the first time investors may not have adequate information about the share market & they should enter the market through institutional investors.
By offering this scheme, the central government aims at channelising household savings into share markets. SEBI also said there would be clarity on the ELSS once the Direct Taxes Code (DTC) Bill is finalised.
The modalities of the scheme are not yet specified, and further details are still awaited. A retail investor can avail the scheme only once in a life time. This is the first ever tax benefit scheme announced by the central government to encourage retail investors participation in the equity market.
To minimise risk associated with direct stock investment for new investors, SEBI (Securities and Exchange Board of India) has asked the central government to route tax-saving RGESS (Rajiv Gandhi Equity Savings Scheme) through MF (mutual fund).
Recently, the market regulator SEBI has submitted a proposal in this regard to the finance ministry.
According to SEBI, the first time investors may not have adequate information about the share market & they should enter the market through institutional investors.
By offering this scheme, the central government aims at channelising household savings into share markets. SEBI also said there would be clarity on the ELSS once the Direct Taxes Code (DTC) Bill is finalised.
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