Rajiv Gandhi Equity Savings Scheme 2012-13

By: DoYouKnow.IN | Views: 5717 | Date: 03-Apr-2012

Union Finance Minister Shri Pranab Mukherjee has provided a tax incentive linked with market return over a long period of time.

Sponsored Links

Sponsored Links

The budget is over and the market is flooded with analyst reviews about the budget. Every budget has provided some tax benefits to the Aam Admi (Mango People) linked with the market returns. This time also the Union Finance Minister Shri Pranab Mukherjee has provided a tax incentive linked with market return over a long period of time.

A new scheme called Rajiv Gandhi Equity Savings Scheme, is proposed in the Union Budget 2012-13 to encourage flow of saving in financial instruments and improve the depths of domestic capital market. The scheme has been introduced for the first time in stock market. The specifications of this scheme are:

 • New investors with income below Rs 10 Lakh can buy stocks up to Rs 50,000 into direct equity market.

 • The scheme will have lock-in period of three years.

 • You get an income tax deduction of 50% of Rs.50000 (Rs 25000)

 • Hold this investment for three years to save a tax over above 80c deduction (this is not included in 80c tax bracket)

The amount Rs.50000 might sound very small but when calculated on a larger scale the Indian stock market will witness one of the huge flow of capital in to the market. There are about 3 crores tax payer citizens in India who are having income below 10 Lac thresh hold. If every one of the investors invest Rs.50000 then putting altogether almost Rs1.5 lacs crores will flow in to the stock market. Above all the three years lock in period will result to a tax saving of around Rs 5000 for the income category within 10 lacs.

This scheme will draw many retail investors to do investment in this new scheme called as Rajiv Gandhi Equity Savings scheme. Retail investors from the remote villages will find a prospective investment avenue over a existing schemes available on the streets. But the success of the scheme will depend upon how the brokers will pick up stock for the investors. Large cap should be the best preferred investment segment as compared to others since mid cap and small cap are the runner ups in stock market performance. It should be wise to design the portfolio with a mixed bag of large, mid and small cap. Midcaps and small caps should be taken into account since today’s midcaps are tomorrow’s large caps and small caps are tomorrows mid caps.

It is well expected that in coming budgets the proposed limit will be hiked so as to draw more savings into stock market. One thing should be kept in mind that this investment scheme is not an ELSS. Those who do not yet have a depository (demat) account would be the target investors for RGESS. It is roughly estimated that there are around 15 million Permanent Account Number (PAN) holders with income between Rs. 2 lakh and Rs. 10 lakh, that do not have a demat account at present.

All we need is to wait for some further clarifications from the Government as well as from SEBI about how to move ahead with the scheme.

People Searching On This Page:

  • Rajiv Gandhi Equity Bachat Yojana
  • eti rajiv gandhi yojna
  • rajiv gandhi yogana
  • rajivgandhibachat yojna
  • yhs-fullyhosted_003
  • yhs-1
  • rajiv gandhi equity saveing yojna
  • rajiv gandhi equity saving diploma
  • rajiv gandhi equity bachat yojna
  • Rajiv gandhi equaty bachat yojna
  • equeti linked
  • rajive gandhi equity bachat yojna
  • rajiv gandhi bachat yojana
  • 13 fnance yojana
  • rajiv gandhi yojana small saving scheme

Post Comments via Facebook Login

 Post Your Comments without Login
Name : (required)

Email : (required)

Website :

Comment : (required)

Special Comment Tags:
New Line :           <br>
Bold Text :           <b>This is bold</b>
Underline Text :    <u>This is underlined</u>

92  + 7   =    

 Related Pages

Diploma Courses and Diploma Top Colleges in Maharashtra 2012-2013

Articles | Engineering    Date: 03-Jan-2012  Views: 27897
There are various courses for which students can apply after 10th SSC class and those courses are AICTE approved Course and available at all engineering and diploma government and private colleges which are undertaken by DTE board of Technical education.

Engineering Admission for 2012-2013 year in Maharashtra

Articles | Engineering    Date: 03-Jan-2012  Views: 30123
Engineering admission will be open in next academic year after the results of higher education or secondary higher education board i.e. SSC, HSC, this resource stats the engineering admission in Maharashtra state.

Upcoming Bikes & Scooters in 2011 & 2012-2013

Articles | Automotive | Motorcycles    Date: 04-Oct-2011  Views: 27255
Upcoming bikes and Scooters in India 2011,2012, 2013 with prices.

Top 3 Cars in 2012 for Best Gas Mileage and Savings in Fuel

Articles | Finance | Insurance    Date: 21-Sep-2011  Views: 1081
Some Tips to cut back everyday expenses like expenses on groceries, education, car insurance, and fuel consumption as well as advise on holding back on the big expenses too, such as homes and new cars, unless they are really a necessity.

DTC - Direct Tax Code - Income Tax Slabs For Financial Year 2012-13

Articles | Finance | Taxes    Date: 08-Aug-2011  Views: 20624
The New Direct Tax Code (DTC) is said to replace the existing Income Tax Act of 1961 in India. During the budget 2010 presentation, the finance minister Mr. Pranab Mukherjee reiterated his commitment to bringing into fore the new direct tax code (DTC) into force from 1st of April, 2011, but same could not be fulfilled and now it will be applicable from 1st April, 2012.
Diploma Courses and Diploma Top Colleges in Maharashtra 2012-2013

Diploma Courses and Diploma Top Colleges in Maharashtra 2012-2013

Date: 03-Jan-2012  Views: 27897

RGESS, RGESS 2012-13, Tax Saving Scheme, Rajiv Gandhi Tax Saving Scheme

Sponsored Links

Email Subscription

Sponsored Links

Searched Keywords
Rajiv Gandhi Equity Bachat Yojana | Eti Rajiv Gandhi Yojna | Rajiv Gandhi Yogana | Rajivgandhibachat Yojna | Yhs-Fullyhosted_003 | Yhs-1 | Rajiv Gandhi Equity Saveing Yojna | Rajiv Gandhi Equity Saving Diploma | Rajiv Gandhi Equity Bachat Yojna | 13 Fnance Yojana | Rajiv Gandhi Yojana Small Saving Scheme | Rajiv Gandhi Tax Saving Bonds | Rajiv Gandhi Shares Yojna | Rajiv Gandhi Yojana Rajiv Gandhi Equity Scheme | Rajiv Gandhi Yogana For Income Tax | Equity Shares That Can Be Linked With Rajic Gandhi Yojana | Www.Rajeev Gandhi Vikas Yojna/Finance | Rajiv Tax Saving | Rajiv Gandhi Tax | Rajiv Gandhi Tax Saving | Rajiv Gandhi Tax Savings |

Search Engine's Visits
Google : 1084 times | Yahoo : 37 times | Bing : 566 times |

Terms of Use