As we suggest in our last post to save Income Tax with small Investment u/s 80CCG (RGESS). But question is arrise that who get benefit of this scheme? This is news scheme and it is available only for New Retail Investors, identified on the basis of their PAN numbers.
Who are considered as “New Retail Investor” under the RGESS:
Who are considered as “New Retail Investor” under the RGESS:
- 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;
- 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, 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
In some specific case,
taxpayee already have a demat account and have done the transactions as
well, you will not be considered as “New Retail Investor” and will not
be entitled for deduction u/s 80CCG.
As far as saving is concerned,
earlier the start, better the miracle of interest compounding. The
importance of saving cannot be overruled at any point of time. Make hay
while the sun shines and the money saved is money earned hold true at
all the time. The other reason that you should start saving early is
that you will need to save less money.
As far as the investment from the income tax perspective is concerned, tax payer can invest -
Rs. 1 Lacs in the
PF/PPF/LIC/ELSS depending upon the returns and
risk appetite of the individual investor. The investment of Rs. 1 Lacs will be eligible for deduction u/s 80C. |
Rs. 15,000/- investment can be
done on the Mediclaim policy to have
deduction u/s 80D. |
Further, a new retail individual investor who has not opened a
demat
account and has not made any transaction in the derivative segment so far or who has opened a demat account but has not made any transaction in the equity segment or the derivative segment, can further have the benefit of deduction u/s 80CCG up to a maximum of Rs. 25,000/- on investment of Rs. 50,000/- The deduction is available only if the income of assessee doesn’t exceed Rs. 10 Lacs & the investment is done in “Eligible Securities”. |
For More Details on RGESS (Click Here)
