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.
Rajiv Gandhi Equity Saving Scheme, Your Double Fayda
1. Rajiv Gandhi Equity Saving Scheme
Your Investment, Your Double Fayda
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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.
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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.
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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 check
if you hold an account with any broker & to track your
trading pattern.
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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.
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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.
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7. Fayda Recommendation
See the table below-
Scrip Name Closing Rate Closing Rate Return
1st March 2003 1st March 2013 (x Times)
HCL 170.95 722.2 4.2
TECHNOLOGIES
ICICI BANK 149.8 1056.35 7.05
HERO MOTOCORP 225.1 1646.05 7.31
BHARTI AIRTEL 27 310.65 11.51
AXIS BANK 44.3 1361.20 30.73
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8. Fayda Recommendation-2
Faydabook always emphasizes on long term savings.
Any scheme that provides opportunity to make you
investment in top notch companies of their respective
sector is surely in Investor‟s benefit.
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9. FAQ's- 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.
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10. FAQ's- 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.
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11. FAQ's- 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.
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