Posts

Showing posts from February, 2013

Details On Rajiv Gandhi Equity Savings Scheme

The Finance Minister recently approved the operational features of the Rajiv Gandhi Equity Savings Scheme (RGESS), and I felt it was a surprisingly complicated scheme which really doesn’t offer any great benefit to investors. Who is eligible for RGESS? The intent of this scheme is to bring new people into equities and that means if you have ever bought any shares or traded in derivatives then you are ineligible for the tax benefits under this scheme. They are going to look at new investors on the basis of the PAN number so you are only eligible in this scheme if there have been no prior equity or derivative transactions in the Demat account linked to your PAN number. Your taxable income should also be less than Rs. 10 lakhs in order to be eligible for this scheme. If your taxable income is more than that then you don’t qualify for this scheme. How do you get the tax RGESS benefit? In order to get the tax benefit, you have to invest in one or more of the following: Stocks l