Rajiv Gandhi Equity Saving Scheme, Your Double Fayda


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When I say, double fayda, I mean it. In RGESS, you not only invest your money in best of the companies for long term with track record of excellent returns but also you can avail Tax benefit of Rs.25,000 on maximum investment of Rs.50,000 under 80CCG.

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Rajiv Gandhi Equity Saving Scheme, Your Double Fayda

  1. 1. Rajiv Gandhi Equity Saving Scheme Your Investment, Your Double Fayda www.faydabook.com
  2. 2. Scheme in a Glance• RGESS is a new tax saving scheme introduced to invest only in selected Equity Stocks, Mutual Funds and ETF‟s. The scheme is designed exclusively for the first time retail individual investors.• Under this scheme, if you are a first time investor with a gross annual income less than Rs 10 lakh, then up to Rs 50,000 of your investments in the stock market will be eligible for tax deduction under section 80- CCG. www.faydabook.com
  3. 3. Reasons to pay attention• Tax benefit- Investments up to Rs 50,000 in scheme selected stocks are eligible for tax benefit under section 80 CCG.• High returns- The stock market has given considerable returns over the year. For example, in the last 10 years,, Nifty has increased over 4.5 times.• Stable- Scheme makes you invest only in top notch companies of their respective sectors. This minimizes the risk of fraud & volatility related to penny stocks. www.faydabook.com
  4. 4. Can You Apply?• Yes, if your total annual income is less than Rs. 12 Lakh.• Yes, if you have not made any transactions in equity or derivatives before November 23,2012.Please note that the Pan Card will be used to cross checkif you hold an account with any broker & to track yourtrading pattern. www.faydabook.com
  5. 5. Interested….How to Apply?• Need to open Demat Account with a Broker/Depository Participant.• If you already have a Demat account where you haven‟t traded, then get that account designated as RGESS account. www.faydabook.com
  6. 6. Conditions Apply• You can make investment only in scheme eligible securities. Click here for Eligible List of Securities & Mutual Funds.• The investment made under RGESS is locked-in for 3 years.However only the 1st year is fixed lock-in. In the subsequent 2 years, the investment is subject to a flexible lock-in. During this period the investor has freedom to book profit or alter the securities in portfolio provided the value of securities is maintained equal to the amount declared under RGESS in the 1st year. www.faydabook.com
  7. 7. Fayda RecommendationSee the table below- Scrip Name Closing Rate Closing Rate Return 1st March 2003 1st March 2013 (x Times) HCL 170.95 722.2 4.2TECHNOLOGIES ICICI BANK 149.8 1056.35 7.05HERO MOTOCORP 225.1 1646.05 7.31BHARTI AIRTEL 27 310.65 11.51 AXIS BANK 44.3 1361.20 30.73 www.faydabook.com
  8. 8. Fayda Recommendation-2 Faydabook always emphasizes on long term savings.Any scheme that provides opportunity to make youinvestment in top notch companies of their respectivesector is surely in Investor‟s benefit. www.faydabook.com
  9. 9. FAQs- Important points to know-1• Can I designate or open more than one Demat account for RGESS? No. You can have only one Demat account across depositories for RGESS.• Can I use an existing demat account for RGESS? Yes. You should submit a declaration in „Form A‟ duly signed by the Account holder(s) for designating the Demat account for RGESS. www.faydabook.com
  10. 10. FAQs- Important points to know-2• I have invested in Equity Mutual Funds/ ETFs but not in stocks or derivatives. Do I qualify for RGESS? Yes, any prior investments in Mutual Funds and/or ETF‟s does not make an investor ineligible for the Scheme.• I possess physical shares. Am I eligible for RGESS? Yes, You will be considered as a new retail investor; but you need to make fresh investments to avail of the benefits under RGESS. www.faydabook.com
  11. 11. FAQs- Important points to know-3• I had equity holdings earlier but do not have any holding in my Demat account. Am I eligible under RGESS? No, Tax benefit under RGESS is available to “new retail investors” who have not made any transactions in stock market• How do I avail Tax Benefit under RGESS? The “new retail investor certificate” will be issued to you by the concerned DP once you open the designated RGESS Demat account. You are required to indicate these details in the Income Tax Returns filed by you. www.faydabook.com
  12. 12. Courtesywww.nseindia.comwww.bseindia.com www.faydabook.com