FAQ asked question on RGESS
1) How will get the tax benefit under this scheme?
To get benefit in this scheme you must fulfill these conditions first
- You have never invested in equities or you have never traded in equiry derivatives before announcement of this scheme ,so you must be new investor.
- You may have demat account but no transaction in equity must have done before announcement of this scheme.
- You taxable income for the year (Fy 2012-13) must be less than 10 lakh.(Limit increased to 12 lakh from Fy 2013-14)
2) Which are the Equity we can buy on this scheme?
You can invest in following securities/Equities
- shares given under BSE100
- shares given in CNX100
- shares of Navratnas, Maharatnas and Miniratnas companies
- Follow on public offers of above companies
- IPO(intial public offers) of PSU where turover is over 4000 crore in last years.
- Mutual funds who has invested in above five type of shares shown above.
- ETF (exchange traded funds ) invested money only in 1-5 sr number shown above,
3) Demat Account is compulsary for this scheme?
Demat account is compulsory to invest in shares /though if invest through mutual funds ,in our opinion demat is not required .You can use your old demat account if you are a eligible as new investor.
4) Is amount of exempetion is above 1 lac in 80C?
This exemption is in addition to section 80C . Maximum amount that is eligible under this scheme is Rs .50000/-. Individual will get 50% of the amount invested as deduction ,subject to maximum deduction of Rs 25000/-
5) When can applicable this scheme?
This scheme is applicable from this year it self mean FY 2012-13. But detailed notification is available here .In the mean time you can start process of opening of new demat account ,if not already have. However start investing in this scheme only after full details are available ,which is expected to come in 15 days time .(first week of October,2012)
6) Is this scheme is available to HUF
No , This scheme is not available to HUF . This is available to Individual only.
7) 10 Lakh Income is Gross total Income or net taxable income
10 Lakh is net taxable income after other deductions.(Limit increased to 12 lakh from Fy 2013-14)
You can raise queries in comment section
Detailed Notification is available now .RGESS 2012