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New Retail Investor – Rajiv Gandhi Equity Savings Scheme
New Retail Investor – Rajiv Gandhi Equity Savings Scheme
One of the conditions for availing Section 80CCG deduction under the Rajiv Gandhi Equity Savings Scheme is that the taxpayer be classified as a new retail investor. According to the definition, a new retail investor is a resident individual who satisfies the following conditions:
- Anyone who is yet to open a demat account and has not done any transaction in the derivative segment before the date of opening a demat account or the first day of the initial year, whichever comes later.;
- Anyone who has opened a demat account prior to notification fromRajiv Gandhi Equity Savings Scheme but has not done any transactions in the equity segment or the derivative segment before the date he entitles his current demat account with an intention to reap the benefits under RGESS or day one of the initial year, whichever comes later. Furthermore, ‘Initial Year’ means
- The financial year in which the investor entitles his demat account asRajiv Gandhi Equity Savings Scheme account and does investment in RGESS securities for availing deduction under RGESS; or
- The financial year in which the investor invests in eligible securities for availing deduction for the first time underRajiv Gandhi Equity Savings Scheme, if the investor doesn’t invest in eligible securities in the financial year designated for the account
