Rajiv Gandhi Equity Savings Scheme RGESS

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Rajiv Gandhi Equity Savings Scheme (RGESS) is a new equity tax advantage savings scheme for equity investors in India. The scheme got it's approval on September 21, 2012. It is exclusively for the first time retail investors in securities market.

The investors who invest up to Rs.50,000 in 'Eligible Securities' and have gross total annual income less than or equal to Rs.12 Lakhs will benefit from a new section 80CCG under the Income Tax Act, 1961 on 'Deduction in respect of investment under an equity savings scheme' has been introduced to give tax benefits

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Rajiv Gandhi Equity Savings Scheme RGESS

  1. 1. TRADEWELL SECURITIES LTD RAJIV GANDHI EQUITY SAVING SCHEME RGESS - 2013
  2. 2. GET TAX BENEFITSBy Investing up to `50, 000* in stock market *Under the Rajiv Gandhi Equity Savings Scheme for new retail investors Only
  3. 3. What is RGESS TRADEWELL1) Rajiv Gandhi Equity Saving Scheme ( RGESS) is a new initiative bythe government of india aimed at encouraging first time investorsto channelize their savings into the capital markets 2) As an incentive, a one - time deduction will be available to thenew retail investor on the % of the amount invested in ` eligiblesecurities’ in the financial year, subject to maximum investment limitof Rs 50,0003) For the purpose of the Claiming benefit under RGESS, the Investorneed to invest in select approved securities as notified by thegovernment
  4. 4. How Do I Invest In account TRADEWELL• If you do not have a demat account– you need to open a new demat account & trading account with yourpreferred stock broker– indicate the account as RGESS account in the account opening form– any securities brought in this account will be automatically consideredfor RGESS• If you have a demat account, but have never traded– you need to designate your existing demat account as an RGESS accountby filling up form A as prescribed by the IT department– once designated for RGESS, the securities brought in this account willbe automatically considered for RGESS
  5. 5. Which Securities Can I Invest TRADEWELLEligible Securities - Equity Shares included in the NSE CNX -100 & BSE -100 – Equity shares of PSU categorized as maharatna, miniratna or navratna – units of ETEs & MFs with eligible securities as underlying and provided they are listed and traded on a stock exchange and settled through depository mechanism – FPO or nfos of above eligible securities – ipos of PSUs with atleast 51% government holding and 3 year annual turnover of more than Rs 4000 crore• you can refer to NSE website for complete list of eligible securities
  6. 6. Who is New Retail Investor TRADEWELLNew retail investorany individual who,– has gross total income less than INR 12 lacs– does not have a demat account and has not made any transactions in the derivative segment as on the date of notification of the scheme– has opened a demat account before the notification of the schemebut has not made any transactions in the equity segment or thederivativesegment till the date of notification of the scheme– who is not the first account holder of an existing joint demat accountshall be deemed to have not opened a demat account
  7. 7. RGESS Scheme Details TRADEWELL•DEDUCTION CRITERIA• Eligibility of the individual investor for the scheme• investment in eligible securities only• maximum deduction of 50% of amount invested, subject to a maximum investment of rs. 50000, only in the same financial year when the investment are made• Deduction available 3 year for every year Rs 2500___________________________________________________________________________LOCK-IN PERIOD• Automatic lock-in of securities during first year. No saleor pledge or hypothecation permitted during this period• flexible lock-in for next two years where the investormay sell the securities, subject to conditions as specifiedby the tax department
  8. 8. THANK YOUREGARD`STRADEWELL SECURITIES LIMITED,LAND LINE :- 040-23541258CONTACT NO: 07799684499E-MAIL ID: info@tradewellmail.comWEBSITE : www.tradewellsec.Com

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