The deduction under the Scheme will be available
to a new retail investor who complies with the conditions of the Scheme and
whose gross total income for the financial year in which the investment is made
under the Scheme is less than or equal to 12 lakh rupees.
* In 2013-14, the income ceiling of the
beneficiaries was raised to Rs. 12 lac from Rs. 10 lac specified in 2012-13.
* 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:
1. Open a demat account with a broker.
2. An investor can invest in eligible securities
in one or more transactions during the year in which the deduction has to be
claimed.
3. 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.
4. The eligible securities brought into the demat
account, as declared or designated by the new retail investor, will
automatically be subject to lock-in during its first year, unless the new
retail investor specifies otherwise and for such specification, the new retail
investor will submit a declaration in Form B indicating that such securities
are not to be included within the above limit of investment.
5. If the
investment is made in the beginning months of a financial year, the inves tment
may be locked in for more than three years. Since the i nvestor is given the
flexibility (of no lock - in) for around 90 days in each of the flexible lock -
in period, this extra lock - in period in the first year is sort of compensated
for.
6. The period of two years beginning immediately
after the end of the fixed lock - in period shall be cal led the ‘Flexible Lock
- in’ period.
7. 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.
8. 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;
9. An investor may also keep securities other
than the eligible securities in the demat account through which benefits under
the Scheme are availed.
10. An investor can make investments in securities
other than the eligible securities covered under the Scheme & such
investments will not be subject to the conditions of the Scheme nor will they
be counted for availing the benefit under the Scheme.
11. The investment under the Scheme will consist
of an investment in any of the eligible securities covered under the Scheme.
12. Deductions claimed will be withdrawn if the
lock-in period requirements of the investment are not complied with or any
other condition of the Scheme is violated.
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