Curious About Tax Savings? Discover the Rajiv Gandhi Equity Savings Scheme 2012

Rajiv Gandhi Equity Savings Scheme 2012

I am attaching the Rajiv Gandhi Equity Savings Scheme 2012, notified on 23.11.2012. It provides for an additional deduction for new retail investors (whose gross total income in the year is not more than Rs.10 lakhs) under section 80CCG of the Income Tax Act, up to Rs.50,000 per annum. The investment has to be made through a demat account for a minimum period of 3 years.

Thanks

The fourth paragraph of the scheme states:
"The deduction under the Scheme shall be available to a new retail investor who complies with 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 equal to ten lakh rupees."

This means that this scheme is of no use to those whose income is more than 10 lakhs since no deduction is allowed under 80CCG.

Thanks with regards,
Keshav Korgaonkar