[TO BE PUBLISHED IN PART II, SECTION
3, SUB-SECTION (ii) OF THE GAZETTE
OF INDIA, EXTRAORDINARY, DATED THE 23rd November, 2012]
3, SUB-SECTION (ii) OF THE GAZETTE
OF INDIA, EXTRAORDINARY, DATED THE 23rd November, 2012]
Government of India
Ministry of Finance
Department of Revenue
Ministry of Finance
Department of Revenue
Notification
New Delhi, the 23rd November, 2012.
(Income-tax)
(Income-tax)
S.O.
2777(E).— In exercise of the powers conferred
by sub-section (1) of section 80CCG of the Income-tax Act, 1961 (43 of 1961),
the Central Government hereby makes the following Scheme, namely:-
2777(E).— In exercise of the powers conferred
by sub-section (1) of section 80CCG of the Income-tax Act, 1961 (43 of 1961),
the Central Government hereby makes the following Scheme, namely:-
1. Short title, commencement and
application. – (1) This Scheme may be called the
Rajiv Gandhi Equity Savings Scheme, 2012.
application. – (1) This Scheme may be called the
Rajiv Gandhi Equity Savings Scheme, 2012.
(2)
It shall come into force on the date of
its publication in the Official Gazette.
It shall come into force on the date of
its publication in the Official Gazette.
(3) 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.
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.
2. Objective of Scheme.-The
objective of the Scheme is to encourage the savings of the small investors in
domestic capital market.
objective of the Scheme is to encourage the savings of the small investors in
domestic capital market.
3. Definitions.– In this Scheme, unless the context otherwise requires,-
(i) “Act”
means the Income-tax Act, 1961 (43 of 1961);
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);
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);
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);
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 :-
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″ by the Bombay Stock Exchange and
the National Stock Exchange, as the case may be;
shares, on the day of purchase, falling in the list of equity declared as
“BSE-100″ or ” CNX-100″ by the Bombay Stock Exchange and
the National Stock Exchange, as the case may be;
(b) equity
shares of public sector enterprises which are categorised as Maharatna,
Navratna or Miniratna by the Central Government;
shares of public sector enterprises which are categorised as Maharatna,
Navratna or Miniratna by the Central Government;
(c) Units
of Exchange Traded Funds (ETFs) or Mutual Fund (MF) schemes with Rajiv Gandhi
Equity Savings Scheme (RGESS) eligible securities as underlying, as mentioned
in sub-clause (i) or sub-clause (ii) above, provided they are listed and traded
on a stock exchange and settled through a depository mechanism;
of Exchange Traded Funds (ETFs) or Mutual Fund (MF) schemes with Rajiv Gandhi
Equity Savings Scheme (RGESS) eligible securities as underlying, as mentioned
in sub-clause (i) or sub-clause (ii) above, provided they are listed and traded
on a stock exchange and settled through a depository mechanism;
(d) Follow
on Public Offer of sub-clauses (i) and (ii) above;
on Public Offer of sub-clauses (i) and (ii) above;
(e) New
Fund Offers (NFOs) of sub-clause (iii) above;
Fund Offers (NFOs) of sub-clause (iii) above;
(f) Initial
Public Offer of a public sector undertaking wherein the government shareholding
is at least fifty-one per cent. which is scheduled for getting listed in the
relevant previous year and whose annual turnover is not less than four thousand
crore rupees during each of the preceding three years;
Public Offer of a public sector undertaking wherein the government shareholding
is at least fifty-one per cent. which is scheduled for getting listed in the
relevant previous year and whose annual turnover is not less than four thousand
crore rupees during each of the preceding three years;
(vi) “financial
year” means a year commencing on the 1st day of April and ending
on the 31st day of March;
year” means a year commencing on the 1st day of April and ending
on the 31st day of March;
(vii) “Form”
means the Form appended to the Scheme;
means the Form appended to the Scheme;
(viii) “investment” means investment by an assessee in
any of the eligible securities
in accordance with the Scheme;
any of the eligible securities
in accordance with the Scheme;
(ix) “new
retail investor” means the following resident individuals:-
retail investor” means the following resident individuals:-
(a) any
individual who has not opened a demat account and has not made any transactions
in the derivative segment as on the date of notification of the Scheme;
individual who has not opened a demat account and has not made any transactions
in the derivative segment as on the date of notification of the Scheme;
(b) any
individual who has opened a demat account before the notification of the Scheme
but has not made any transactions in the equity segment or the derivative
segment till the date of notification of the Scheme,
individual who has opened a demat account before the notification of the Scheme
but has not made any transactions in the equity segment or the derivative
segment till the date of notification of the Scheme,
and any individual who is not the first account holder of an
existing joint demat account shall be deemed to have not opened a demat account
for the purposes of this Scheme
existing joint demat account shall be deemed to have not opened a demat account
for the purposes of this Scheme
(x) “Scheme”
means the Rajiv Gandhi Equity Savings Scheme;
means the Rajiv Gandhi Equity Savings Scheme;
(xi) words and expressions used and not defined in this Scheme, but
defined in the Act, shall have the meanings respectively assigned to them in
the Act.
defined in the Act, shall have the meanings respectively assigned to them in
the Act.
4. Eligibility
.- The deduction under the Scheme shall 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 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.
5. Procedure
at time of opening demat account.- The new retail investor shall follow the
following procedure at the time of opening or designating a demat account :-
at time of opening demat account.- 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;
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;
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.
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.
6. Procedure
for investment under Scheme.- A new retail investor shall make investments
under the Scheme in the following manner :-
for investment under Scheme.- 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;
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 exceed fifty
thousand rupees;
new retail investor may make any amount of investment in the demat account but
the amount eligible for deduction, under the Scheme shall not exceed fifty
thousand rupees;
(c) 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, as per the provisions of paragraph 7, unless the new retail
investor specifies otherwise and for such specification, the new retail
investor shall submit a declaration in Form B indicating that such securities
are not to be included within the above limit of investment;
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, as per the provisions of paragraph 7, unless the new retail
investor specifies otherwise and for such specification, the new retail
investor shall submit a declaration in Form B indicating that such securities
are not to be included within the above limit of investment;
(d) the
new retail investor shall be eligible for a deduction under sub-section (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;
new retail investor shall be eligible for a deduction under sub-section (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;
(e) the
new retail investor who has claimed a deduction under sub- section (1) of
section 80CCG of the Act, in any assessment year, shall not be allowed any deduction
under the Scheme for any subsequent assessment year;
new retail investor who has claimed a deduction under sub- section (1) of
section 80CCG of the Act, in any assessment year, shall not be allowed any deduction
under the Scheme for any subsequent assessment year;
(f) the
new retail investor shall 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 shall be deemed to have been purchased in the
financial year itself;
new retail investor shall 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 shall be deemed to have been purchased in the
financial year itself;
(g) the
new retail investor may also keep securities other than the eligible securities
covered under the Scheme in the demat account through which benefits under the
Scheme are availed;
new retail investor may also keep securities other than the eligible securities
covered under the Scheme in the demat account through which benefits under the
Scheme are availed;
(h) the
new retail investor can make investments in securities other than the eligible
securities covered under the Scheme and such investments shall not be subject
to the conditions of the Scheme nor shall they be counted for availing the
benefit under the Scheme;
new retail investor can make investments in securities other than the eligible
securities covered under the Scheme and such investments shall not be subject
to the conditions of the Scheme nor shall they be counted for availing the
benefit under the Scheme;
(i) the
investment under the Scheme shall consist of all eligible securities covered
under the Scheme that are initially bought by the investor under the Scheme or
that are bought subsequently by the investor as per the provisions of the
Scheme;
investment under the Scheme shall consist of all eligible securities covered
under the Scheme that are initially bought by the investor under the Scheme or
that are bought subsequently by the investor as per the provisions of the
Scheme;
(j) the
deduction claimed shall be withdrawn if the lock-in period requirements of the
investment are not complied with or any other condition of the Scheme is
violated.
deduction claimed shall be withdrawn if the lock-in period requirements of the
investment are not complied with or any other condition of the Scheme is
violated.
7. Period
of holding requirements. –
of holding requirements. –
(1) The
period of holding of eligible securities shall be three years to be counted in
the manner detailed hereunder.
period 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.
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.
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.
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:-
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:-
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 portfolio of eligible securities , within the flexible
lock-in period, is equal to or higher than the amount claimed as investment for
the purposes of deduction under section 80CCG of the Act;
demat account shall be considered compliant for the number of days where value
of the investment portfolio of eligible securities , within the flexible
lock-in period, is equal to or higher than the amount claimed as investment for
the purposes of deduction under section 80CCG of the Act;
(B) in
case the value of investment portfolio in the demat account falls due to fall
in the market rate of eligible securities in the flexible lock-in period, then
notwithstanding sub clause(A), –
case the value of investment portfolio in the demat account falls due to fall
in the market rate of eligible securities in the flexible lock-in period, then
notwithstanding sub clause(A), –
(i) the demat account shall be considered compliant from the
first day of the flexible lock-in period to the day any such eligible
securities are sold during
this period;
first day of the flexible lock-in period to the day any such eligible
securities are sold during
this period;
(ii) where the assessee sells the eligible securities mentioned
in sub-clause (B) from his demat account, he shall have to purchase eligible securities
and the said demat account shall be compliant from the day on which the value
of the investment portfolio in the account becomes –
in sub-clause (B) from his demat account, he shall have to purchase eligible securities
and the said demat account shall be compliant from the day on which the value
of the investment portfolio in the account becomes –
(I) at least equivalent to the investment claimed as
eligible for deduction under
section 80CCG of the Act or;
eligible for deduction under
section 80CCG of the Act or;
(II) the value of the investment
portfolio under the Scheme before such sale,
portfolio under the Scheme before such sale,
whichever is less.
(6) The
new retail investor’s demat account created under the Scheme shall, on the
expiry of the period of holding of the investment, be converted automatically
into an ordinary demat account.
new retail investor’s demat account created under the Scheme shall, on the
expiry of the period of holding of the investment, be converted automatically
into an ordinary demat account.
(7) For
the purpose of valuation of investment during the flexible lock-in period, the
closing price as on the previous day of the date of trading, shall be considered.
the purpose of valuation of investment during the flexible lock-in period, the
closing price as on the previous day of the date of trading, shall be considered.
(8) While
making the initial investments upto fifty thousand rupees, the total cost of
acquisition of eligible securities shall not include brokerage charges,
Securities Transaction Tax, stamp duty, service tax and all taxes, which are
appearing in the contract note.
making the initial investments upto fifty thousand rupees, the total cost of
acquisition of eligible securities shall not include brokerage charges,
Securities Transaction Tax, stamp duty, service tax and all taxes, which are
appearing in the contract note.
(9) Where
the investment of the new retail investor undergoes a change as a result of
involuntary corporate actions like demerger of companies, amalgamation, etc.
resulting in debit or credit of securities covered under the Scheme, the
deduction claimed by such investor shall not be affected.
the investment of the new retail investor undergoes a change as a result of
involuntary corporate actions like demerger of companies, amalgamation, etc.
resulting in debit or credit of securities covered under the Scheme, the
deduction claimed by such investor shall not be affected.
(10) In
case of voluntary corporate actions like buy-back, etc. resulting only in debit
of securities, where new retail investor has the option to exercise his choice,
the same shall be considered as a sale transaction for the purpose of the Scheme.
case of voluntary corporate actions like buy-back, etc. resulting only in debit
of securities, where new retail investor has the option to exercise his choice,
the same shall be considered as a sale transaction for the purpose of the Scheme.
(11) The Securities and Exchange 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.
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.
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.
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.
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.
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 paragraph 10, the Director General of Income Tax (Systems) shall
determine the procedures, formats and standards for furnishing of the report in
electronic format in Form C by the depositories.
the purpose of paragraph 10, the Director General of Income Tax (Systems) shall
determine the procedures, formats and standards for furnishing of the report in
electronic format in Form C by the depositories.
12. Assessees
shall be liable to submit the relevant records to the income-tax authorities
for verification, as and when required.
shall be liable to submit the relevant records to the income-tax authorities
for verification, as and when required.
[ Notification No. 51 /2012 F. No.
142/35/2012 –TPL]
142/35/2012 –TPL]
(Raman Chopra)
Director
(TPL-II)
(TPL-II)
Form A
[See paragraph 5(b)]
Declaration to be submitted by the investors to the
depository participants for availing the benefits under the Rajiv Gandhi Equity
Savings Scheme.
depository participants for availing the benefits under the Rajiv Gandhi Equity
Savings Scheme.
Name
of the Investor: (first holder)
of the Investor: (first holder)
Address
of the investor:
of the investor:
Permanent
Account Number (PAN):
Account Number (PAN):
1. It is hereby certified that* —
(a) I
do not have a demat account and I have not traded in any derivatives.
do not have a demat account and I have not traded in any derivatives.
(b) I
have demat account no _________________ in ____________________ depository
participant but I have not traded in any equity shares or derivatives in this
account.
have demat account no _________________ in ____________________ depository
participant but I have not traded in any equity shares or derivatives in this
account.
(c) I
have a joint demat account no _________________ in ____________________
depository participant but I am not the first account holder.
have a joint demat account no _________________ in ____________________
depository participant but I am not the first account holder.
2. I hereby
declare that I have read and understood all the terms and conditions of the
Rajiv Gandhi Equity Savings Scheme.
declare that I have read and understood all the terms and conditions of the
Rajiv Gandhi Equity Savings Scheme.
3. It is hereby
verified that I am an eligible new retail investor for availing the benefits
under the Rajiv Gandhi Equity Savings Scheme.
verified that I am an eligible new retail investor for availing the benefits
under the Rajiv Gandhi Equity Savings Scheme.
4. I undertake
to abide by all the requirements and fulfill all obligations under the Scheme,
and will comply with all the terms and conditions of the Scheme.
to abide by all the requirements and fulfill all obligations under the Scheme,
and will comply with all the terms and conditions of the Scheme.
5. I understand
that, in case I fail to comply with any condition specified in the Scheme, the
benefits availed there under will be withdrawn and the tax shall be payable by
me accordingly.
that, in case I fail to comply with any condition specified in the Scheme, the
benefits availed there under will be withdrawn and the tax shall be payable by
me accordingly.
Signature of the Investor
Place:
Date:
*
Tick which ever is appropriate.
Tick which ever is appropriate.
[See paragraph 6(c) and (d)]
Declaration to be submitted by the
new retail investor to the depository participant on purchase of eligible
securities.
new retail investor to the depository participant on purchase of eligible
securities.
To
Depository
participant
participant
Address
It is hereby informed that I have demat account no
_________________ in ____________________ depository participant and the
following securities
_________________ in ____________________ depository participant and the
following securities
(a)
(b)
(c)
(d)
(e) purchased
in the aforesaid demat account on ______________are not to be
included as investment for the purpose of the Rajiv Gandhi Equity Savings
Scheme.
in the aforesaid demat account on ______________are not to be
included as investment for the purpose of the Rajiv Gandhi Equity Savings
Scheme.
Signature
Name
of the Investor: (first holder)
of the Investor: (first holder)
Address
of the investor:
of the investor:
Permanent
Account Number (PAN):
Account Number (PAN):
Form C
[See paragraphs 10 and 11]
Annual report to be submitted by the
depository to the Income Tax Department in Electronic Format before 30th April.
depository to the Income Tax Department in Electronic Format before 30th April.
(For 80 CCG benefits of Financial
Year 2012-13)
Year 2012-13)
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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 |
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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 fixed lock-in* |
Whether
A/c compliant with RGESS# with respect to 270 days period* |
Whether
A/c compliant with RGESS# with respect to 270 days period* |
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*
The Electronic Format shall be determined by the Director General of Income Tax
(Systems) by 31st March, 2013.
The Electronic Format shall be determined by the Director General of Income Tax
(Systems) by 31st March, 2013.
**The Financial Year shall be enhanced by one Financial Year
every year. #RGESS means the Rajiv Gandhi Equity Savings Scheme.
every year. #RGESS means the Rajiv Gandhi Equity Savings Scheme.
#RGESS means the Rajiv Gandhi Equity Savings Scheme.
Source: www.incometaxindia.gov.in
[http://www.incometaxindia.gov.in/archive/BreakingNews_Notification_RGESS_30112012.pdf]
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COMMENTS
Me like to get this investment scheme, but in shimoga city of karnataka state it yet to be recieved for submitting application, hence guide me how to get this schme's application and procedure further. Please send details to my email id : [email protected]