Rajiv Gandhi Tax Saving Scheme

Govt may cut lock-in under Rajiv Gandhi equity scheme to 1 yr

Financial Chronicle, 5/4/12

source: http://www.mydigitalfc.com/news/govt-may-cut-lock-under-rajiv-gandhi-equity-scheme-1-yr-763

The government is likely to reduce the lock-in period under the Rajiv Gandhi Equity Scheme for new equity investors to one year from three years proposed in the Budget 2012-13 and a circular to this effect could be issued within a month, official sources said.

"We discussed the issue of reduction of the blanket lock- in period to one year. We will meet the stock exchanges again and finalise the modalities," they said after meeting the representatives of BSE, National Stock Exchange, MCX-SX and other exchanges.

Retail investors, they said, would be allowed to invest in top 100 listed entities in BSE and NSE under the scheme which was unveiled by Finance Minister Pranab Mukherjee in the Budget 2012-13.

The Minister had announced 50 per cent tax deduction to retail investors with annual income of less than Rs 10 lakh for investment up to Rs 50,000 in a year with a lock-in period of three years under the Rajiv Gandhi scheme.

It was later clarified that a retail investor can avail of the scheme only once in a life time. This is the first- ever tax benefit scheme announced by the government to encourage retail investors participation in the equity market.

Such a type of scheme was first introduced in Belgium, followed by France and some East European countries.

scheme was highly successful in France and had helped in increasing retail participation in equity market from 7 per cent to 17 per cent, sources said, adding it was also appreciated by IMF Managing Director Christine Lagarde in her meeting with Mukherjee last week.

By offering this scheme, the government aims at channelising household savings into stock markets.

Besides, Mukherjee in his Budget had also proposed to cut the Securities Transaction Tax (STT) from 0.125 per cent to 0.1 per cent with effect from July 1 to reduce transaction cost for equity investment.

Our Service: We at VRIDHI will prepare a complete presentation on how one can benefit from the Rajiv Gandhi Equity Tax Savings Scheme once the guidelines are announced. We will also help investors avail the benefits of the scheme by giving right advice to the investors.



Financial Planner & Wealth Manager

Office Mobile: 98405-40575


Rajiv Gandhi Equity Scheme, Tax Saving through Rajiv Gandhi Equity Scheme, Rajiv Gandhi Equity Scheme Investment Limit, How to Save Tax Rajiv Gandhi Equity Scheme, Amount of Money likely to get invested in Rajiv Gandhi Equity Scheme, Rajiv Gandhi Tax Saving Scheme Rules, Guidelines for Rajiv Gandhi Equity Tax Savings Scheme, Rajiv Gandhi Equity Savings Scheme, Detailed clarification on Rajiv Gandhi Equity Tax Savings Scheme, Rajiv Gandhi Equity Saving Form, Rajiv Gandhi Equity Tax Saver, best tax saving investment, review of sbi tax advantage fund, income tax saving consultants advisers in Chennai India, tax saving strategies for all ages, tax saving investments 2012, tax saving schemes 2012, top 5 elss mutual funds, elss mutual funds 2012, elss mutual funds comparison, best elss mutual funds in india, Top 10 tax saving mutual funds, top tax saving mutual funds, best tax saving mutual funds to invest in 2012

Post your Valuable Comments below:

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.