TMI BlogRajiv 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.X X X X Extracts X X X X X X X X Extracts X X X X ..... 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-100 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 amount eligible for deduction, under the Scheme shall not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anner 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 shall be considered compliant for the number of days where value of the investment portfol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f 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 him, within a period of thirty days from the end of the relevant financial year. 11. For the purpose of para ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... v Gandhi Equity Savings Scheme. Signature Name of the Investor: (first holder) Address of the investor: Permanent Account Number (PAN): Form C [See paragraphs 10 and 11] Annual report be submitted by the depository to the Income Tax Department in Electronic Format before 30th April. (For 80CCG benefits of Financial Year 2012-13) 2012-13 Report to be furnished by 30th April 2013 2013-14 Report to be furnished by 30th April 2014 2014-15 Report to be furnished by 30th April 2015 2015-16 Report to be furnished by 30th April 2016 Name PAN DEMAT A/c No. Date of opening A/c Date of investment for the Purpose of lock-in (date of making the last investment in RGESS# eligible scrip) Amount of Investment Scrips locked in RGESS# Whether A/c eligible under the RGESS# Scheme Whether A/c compliant with RGESS# with respect to fi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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