- Is your gross total annual income above Rs 10 lakh?(Limit increased to 12 lakh from Fy 2013-14)
- Have you made any transactions in equity or derivatives before November 23, 2012?
HOW TO START
If you are eligible, you need to undertake the following steps:
- Open a demat account with either NDSL or CDSL through a depository participant. A depository participant is either a broker or a bank and you can get a list of depository participants from NSE, NDSL and CDSL site.
- Designate the demat account as a RGESS account. If you have an existing demat account where you haven’t traded, then you should designate that account as a RGESS account. You can use the Form A for this purpose.
- Purchase eligible stocks through one or more transactions across the year.
- Claim tax benefits under Section 80 CCG when you file your Income Tax returns.
- The investment made under RGESS is locked in for a total period of three years. However only the first year is a fixed lock-in. In the subsequent two years, the investment is subject to a flexible lock-in. During this flexible lock-in period the investor has a freedom to book profit or alter the securities in her/his portfolio provided the value of securities in the demat account is maintained equal to the amount declared as investment under RGESS in the first year.
You can pick the below listed stocks from four categories: CNX 100, BSE 100, Maharatna and Navaratna & ETFs
1.Securities in CNX 100(list can be changed by NSE)
3 MAHARATNA & NAVARATNA COMPANIES
Indian Oil Corporation Limited
Oil & Natural Gas Corporation Limited
Steel Authority of India Limited
b)NAVRATNA Bharat Electronics Limited
Bharat Heavy Electrical Limited
Bharat Petroleum Corporation Limited
GAIL (India) Limited
Hindustan Petroleum Corporation Limited
Mahanagar Telephone Nigam Limited
National Aluminium Company Limited
Neyveli Lignite Corporation Limited
Oil India Limited
Power Finance Corporation Limited
Power Grid Corporation of India Limited
Rural Electrification Corporation Limited
Shipping Corporation of India Limited
Goldman Sachs Banking Index Exchange Traded Scheme BANKBEES
Goldman Sachs Nifty Exchange Traded Scheme NIFTYBEES
Goldman Sachs Nifty Junior Exchange Traded Scheme JUNIORBEES
Goldman Sachs S&P CNX Nifty Shariah Index Exchange Traded Scheme SHARIABEES
IIFL NIFTY ETF* IIFLNIFTY
Kotak Nifty ETF* KOTAKNIFTY
Motilal Oswal MOSt shares M50 ETF* M50
Quantum Index Fund QNIFTY
R*Shares Banking Exchange Traded Fund* RELBANK
Religare Nifty Exchange Traded Fund RELGRNIFTY