RGESS is a new equity tax advantage savings scheme for equity investors
in India, with the stated objective of "encouraging the savings of the
small investors in the domestic capital markets." . It was approved by The
Union Finance Minister, Shri. P. Chidambaram on September 21, 2012. It is
exclusively for the first time retail investors in securities market. This
Scheme would give tax benefits to new investors who invest up to Rs. 50,000 and
who is below Rs. 12 lakh.
The Scheme not only encourages the flow of savings and improves the
depth of domestic capital markets, but also aims to promote an 'equity culture'
in India. This is also expected to widen the retail investor base in the
maximum Investment permissible under the Scheme is Rs. 50,000 and the investor
would get a 50% deduction of the amount invested from the taxable income for
that year.
1.
It provides additional tax benefits over and above under the Income Tax Act.
2.
Gains, arising of investments in RGESS, can be realized after a year. This is
in contrast to all other tax saving instruments.
3.
Investments are allowed to be made in installments in the year in which are
filed.
4.
Dividend payments are tax free.
5.
This scheme has a long run benefit of educating the retail investment segment
and thereby moving towards financial inclusivity in the country.
6.
Success of this scheme can lead to transfer of assets instruments such as bank
deposits and FDs to the capital markets, leading to diversification in retail
investor portfolio and also leading to more productive "capital formation"
assets.
Eligibility: - The
deduction under the Scheme 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 12 lakh rupees.
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
- complies with all the other conditions of the Scheme
For best terms please contact RR Investors call 1800110444 or 9540056975
or dial 01123636363
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