India-First-Global-Insights-Analysis -Sharing-PlatformIndia-First-Global-Insights-Analysis -Sharing-Platform

RGESS boost for MFs – set to become part of Rajiv Gandhi Equity Scheme

, August 31, 2012, 0 Comments

In a major boost for MF industry, Rajiv Gandhi Equity Savings Scheme (RGESS) is all set to allow investment through mutual funds to get tax benefit. There will be certain conditions attached to that. The Finance Ministry is in the process of notifying the scheme. With the new conditions now introduced, scheme requires amendment in Parliament.

Under the ‘RGESS’ scheme, as announced in the 2012-13 Budget, investment in equity by the first-time investor will be eligible for deduction of up to Rs 25,000 from his taxable income.

A person can get the tax benefit only once and the condition is that his annual income should not exceed Rs 10 lakh.

Earlier, the scheme had proposed to allow first-time investment in equity to get tax benefit. But after the recommendation of SEBI that the RGESS should also provide for investments in equity schemes of mutual funds which have the securities allowed under RGESS as the underlying.






About author
Market Bureau comprises of team of highly skilled Professionals who have expertise in Financial & Business Reporting. It also includes freelancers ,consultants and authors from our content partners who brings in valued and critical insights to this section with their rich experience. ...more