Budget
2017-18: Phase out the Rajiv Gandhi
Equity Savings Scheme - RGESS from
2018-19.
Share market participants have
interpreted a Budget proposal as a move to phase out the Rajiv Gandhi Equity
Savings Scheme (RGESS) from 2018-19.
Under the scheme,
first-time investors with a gross annual income of up to Rs. 12 lakh could
invest up to Rs. 50,000 in specified stocks or mutual fund units to get tax
benefits under Section 80CCG of the Incomme Tax Act.
Half of the investment
made was allowed as deduction in computation of total income for the financial
year to the extent it did not exceed Rs. 25,000.
The Budget 2017-18 has
proposed to insert a new sub-section so as to stop giving the tax benefit from
the assessment year starting April 2018.
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