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03-21-2012, 10:04 AM #1
Rajiv Gandhi Equity Scheme details in a month: FinMin
The Finance Ministry on Wednesday said it is working on the proposed Rajiv Gandhi Equity Savings Scheme , which is aimed at boosting retail investments in capital market, and the details are expected in a month's time.
"Details on it should be out in a month's time," Finance Secretary R S Gujral told reporters on sidelines of a Ficci meet.
Finance Minister Pranab Mukherjee in the Budget 2012-13 had announced this scheme that will allow 50 per cent tax deduction for those whose annual income is below Rs 10 lakh and who invest up to Rs 50,000 in stocks.
The scheme, for individuals with annual income of below Rs 10 lakh, will have a lock-in period of three years.
The move is the first ever tax benefit for direct investments in stocks.
However, this scheme can be availed only once in a lifetime.
By offering this scheme, the government aims to channelise savings into the stock markets.
In addition, government sought to make trading in capital markets less costlier and simpler, with the lowering of securities transaction tax, along with various other measures to boost equity, commodity and bond market.