Press Information Bureau

Government of India

Ministry of Finance

16-March-2012 14:09 IST

Rajiv Gandhi Equity Savings Scheme Launched

A new scheme called Rajiv Gandhi Equity Savings scheme is proposed in the Union Budget 2012-13 to encourage flow of saving in financial instruments and improve the depths of domestic capital market.

The Union Finance Minister ShriPranab Mukherjee in his Budget speech in LokSabha today said that the scheme allows for income tax deduction of 50 per cent to new retail investors, who invest up to Rs 50,000 directly in equities and whose annual income is below Rs 10 lakhs. The scheme will have lock-in period of three years. The details will be announced in due course.

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DSM/RC/SKS/13

Income tax deduction for new retail investors to promote direct equity investment with eligibility and lock-in conditions. A central government scheme provides a limited income tax deduction for qualifying new retail investors who invest directly in equities, subject to an upper income eligibility threshold, a capped amount eligible for deduction, and a prescribed lock-in period, with detailed operational rules to be announced later.