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Type of Facility : How to Invest Rajiv Gandhi Equity Savings Scheme
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Rajiv Gandhi Equity Savings Scheme

RGESS Benefits :
Rajiv Gandhi Equity Savings Scheme or RGESS is a new equity tax advantage savings scheme for equity investors in India, with the stated objective of "encouraging the savings of the small investors in the domestic capital markets.". It was approved by The Union Finance Minister, Shri. P. Chidambaram on September 21, 2012. It is exclusively for the first time retail investors in securities market. This Scheme would give tax benefits to new investors who invest up to Rs. 50,000 and whose annual income is below Rs. 10 lakh.
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.
The maximum Investment permissible under the Scheme is Rs. 50,000 and the investor would get a 50% deduction of the amount invested from the taxable income for that year.
** It provides additional tax benefits over and above the present tax savings schemes under the Income Tax Act.
** Gains, arising of investments in RGESS, can be realized after a year. This is in contrast to all other tax saving instruments.
** Investments are allowed to be made in installments in the year in which the tax claims are filed.
** Dividend payments are tax free.
** This scheme has a long run benefit of educating the retail investment segment and thereby moving towards financial inclusivity in the country.
** Success of this scheme can lead to transfer of assets from traditional savings instruments such as bank deposits and FDs to the capital markets, leading to diversification in retail investor portfolio and also leading to more productive "capital formation" assets

Eligibility :
The deduction under the Scheme will 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.

The deduction under the Scheme shall be available to a new retail investor who :
** is a resident of India
** has a gross total income for the financial year less than or equal to Rs. 10 Lakh
** complies with all the other conditions of the Scheme

Procedure for Investment :
A new retail investor can make investments under the Scheme in the following manner:
** Open a demat account with a broker.
** An investor can invest in eligible securities in one or more transactions during the year in which the deduction has to be claimed.
** An investor can make any amount of investment in the demat account but the amount eligible for deduction, under the Scheme will not exceed fifty thousand rupees.
** The eligible securities brought into the demat account, as declared or designated by the new retail investor, will automatically be subject to lock-in during its first year, unless the new retail investor specifies otherwise and for such specification, the new retail investor will submit a declaration in Form B indicating that such securities are not to be included within the above limit of investment.
** An investor will be eligible for a deduction under subsection (1) of section 80CCG of the Act in respect of the actual amount invested in eligible securities , in the first financial year in respect of which a declaration in Form B has not been made, subject to the maximum investment limit of fifty thousand rupees.
** An investor who has claimed a deduction under sub- section (1) of section 80CCG of the Act, in any assessment year, will not be allowed any deduction under the Scheme for any subsequent assessment year;
** An investor will be permitted a grace period of three trading days from the end of the financial year so that the eligible securities purchased on the last trading day of the financial year also get credited in the demat account and such securities will be deemed to have been purchased in the financial year itself.
** An investor may also keep securities other than the eligible securities in the demat account through which benefits under the Scheme are availed.
** An investor can make investments in securities other than the eligible securities covered under the Scheme and such investments will not be subject to the conditions of the Scheme nor will they be counted for availing the benefit under the Scheme.
** The investment under the Scheme will consist of an investment in any of the eligible securities covered under the Scheme.
** Deductions claimed will be withdrawn if the lock-in period requirements of the investment are not complied with or any other condition of the Scheme is violated.

Download Form - B : http://www.bseindia.com/rgess/downloads/Form_B.pdf

See more details get here : http://www.bseindia.com/rgess/index.htm

[Unregistered]

Can one square off transactions done in Rolling Settlements?

Yes.Since the trades done during a day in a Rolling Settlement except those in scrips in "Z" group are netted, one can square off the transaction on that day only. The trades in "Z" group scrips are not allowed to be netted and are settled on a trade-to-trade basis. As such, the squaring off should be done before close of the market hours on that day. It may be clearly understood that the trades during a day cannot be squared off or netted with transactions on the earlier or subsequent days.