Rajiv Gandhi Equity Savings Scheme, 2012 - In This Scheme shall apply for claiming deduction in the computation of total income of the assessment year relevant to a previous year on account of investment in eligible securities under sub-section (1) of section 80CCG of the Income-tax Act, 1961.

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....of total income of the assessment year relevant to a previous year on account of investment in eligible securities under sub-section (1) of section 80CCG of the Income-tax Act, 1961. Objective of Scheme 2. The objective of the Scheme is to encourage the savings of the small investors in domestic capital market. Definitions 3. In this Scheme, unless the context otherwise requires,- (i) "Act" means the Income-tax Act, 1961 (43 of 1961); (ii) "demat account" means an account opened with the depository participant in accordance with the guidelines laid down by the Securities and Exchange Board of India established under section 3 of the Securities and Exchange Board of India Act, 1992 (15 of 1992); (iii) "depository" means a company as defined in clause (e) of sub-section (1) of section 2 of the Depositories Act, 1996 (22 of 1996); (iv) "depository participant" means a participant as defined in clause (g) of sub-section (1) of section 2 of the Depositories Act, 1996 (22 of 1996); (v) "eligible securities" means any of the following :- (a) equity shares, on the day of purchase, falling in the list of equity declared as "BSE-100" or "CNX-....

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....ual to ten lakh rupees. Procedure at time of opening demat account 5. The new retail investor shall follow the following procedure at the time of opening or designating a demat account:- (a)  the new retail investor shall open a new demat account or designate his existing demat account for the purpose of availing the benefit under the Scheme; (b)  the new retail investor shall submit a declaration in Form A to the depository participant who will forward the same to the depository for verifying the status of the new retail investor; (c)  the new retail investor shall furnish his Permanent Account Number (PAN) while opening the demat account or designating the existing account as a Rajiv Gandhi Equity Savings Scheme eligible account, as the case may be. Procedure for investment under Scheme 6. A new retail investor shall make investments under the Scheme in the following manner:- (a) the new retail investor may make investment in eligible securities in one or more than one transactions during the year in which the deduction has to be claimed; (b) the new retail investor may make any amount of investment in the demat account but the amoun....

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....od of holding of eligible securities shall be three years to be counted in the manner detailed hereunder. (2) All eligible securities are required to be held for a period called the fixed lock-in period which shall commence from the date of purchase of such securities in the relevant financial year and end one year from the date of purchase of the last set of eligible securities (in the same financial year) on which deduction is claimed under the Scheme. (3) The new retail investor shall not be permitted to sell, pledge or hypothecate any eligible security during the fixed lock-in period. (4) The period of two years beginning immediately after the end of the fixed lock-in period shall be called the flexible lock-in period. (5) The new retail investor shall be permitted to trade the eligible securities after the completion of the fixed lock-in period subject to the following conditions:- (a)  the new retail investor shall ensure that the demat account under the Scheme is compliant for a cumulative period of a minimum of two hundred and seventy days during each of the two years of the flexible lock-in period as laid down hereunder:- (A)  the demat account ....

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....change Board of India established under section 3 of the Securities and Exchange Board of India Act, 1992 (15 of 1992) shall notify the corporate actions, referred to in sub-paragraph (9), allowed under the Scheme in this regard. 8. If the new retail investor fails to fulfil any of the provisions of the Scheme, the deduction originally allowed to him under sub-section (1) of section 80CCG of the Act for any previous year, shall be deemed to be the income of the assessee of such previous year and shall be liable to tax for the assessment year relevant to such previous year. 9. (1) The depository shall certify the new retail investor status of the assessee at the time of designating his demat account as demat account for the purpose of the Scheme. (2) The depository participant shall furnish an annual statement of the eligible securities invested in or traded through the demat account to the demat account holder. 10. The depository shall provide a consolidated statement of details in the electronic format, as specified in Form C, on all the Rajiv Gandhi Equity Savings Scheme beneficiaries to the Director General of Income Tax (Systems) or any other person authorised by hi....