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Sep 21, 2012

India Introduces Tax Savings Scheme for First Time Investors in Shares

The new scheme aims to promote an ‘equity culture’ in India
image The Union Finance Minister, Shri. P. Chidambaram approved a new tax saving scheme called “Rajiv Gandhi Equity Saving Scheme“(RGESS),exclusively for the first time retail investors in securities market. The maximum Investment permissible under the Scheme is Rs. 50,000, whose annual income is below Rs. 10 lakh. The investor would get a 50% deduction of the amount invested from the taxable income for that year. The Scheme not only encourages the flow of savings and improves the depth of domestic capital markets, but also aims to promote an ‘equity culture’ in India. This is also expected to widen the retail investor base in the Indian securities markets.