H&R Block – Investments in Equity Saving Schemes for Tax Exemption

H&R Block – Are investments in Equity exempt from tax?

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H&R Block – Are investments in Equity exempt from tax?

Inflow of funds in the equity markets is welcomed by governments as it gives a boost to industries in various sectors. Government also gives some tax incentives to such investments. In this article we will discuss these tax exemptions and the conditions when these exemptions can be claimed.

Amount invested in Equity Saving Scheme is available for deduction from tax at the rate of 50% of the amount invested. This scheme is known as Rajiv Gandhi Equity Savings Scheme (RGESS). The deduction is available under section 80CCG. The Maximum ceiling of investments is up to Rs. 50,000/-. Following are some conditions which should be satisfied to claim these deductions:

  • The deduction is available only to an individual
  • The gross total income of the individual should not exceed Rs. 12,00,000/- for the relevant assessment year .
  • The individual has acquired listed securities in accordance with the scheme
  • The individual is a new investor
  • Investments have a lock in period of three years.

The deduction is allowed for three consecutive years beginning with the assessment year in which the deduction was first claimed.

H&R Block India strives to blend tax expertise with a strong focus on continually improving the client experience to provide all its clients with an unparalleled value proposition for E filing their Income Tax Returns Online.

 Visit hrblock.in for more information or to find your nearest office to find assistance to file taxes.

HRBlockIndia
HRBlockIndia
H&R Block India strives to blend tax expertise with a strong focus on continually improving the client experience to provide all its clients with an unparalleled value proposition for filing their Income Tax Online.

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