Press Esc to close

Chidambaram unveils measures to lure people from gold

New Delhi, Feb 28, 2013, (IANS): 15:51 IST
Finance Minister P. Chidambaram Thursday announced measures to encourage people to make productive investments in financial markets and housing, instead of just putting their money in gold.

“The household sector must be incentivised to save in financial instruments rather than buy gold,” Chidambaram said while presenting the national budget for 2013-14.

The finance minister announced liberalisation of the Rajiv Gandhi Equity Savings Scheme (RGESS), with a view to make it more attractive to the common people.

First time investors will now be allowed to invest in mutual funds as well as listed shares. This investment can be done not in one year alone, but in three successive years. The income limit is raised from Rs.10 lakh to Rs.12 lakh.

To protect savings and investments form inflation, Chidambaram announced the issue of inflation-indexed funds.

“In consultation with RBI, I propose to introduce instruments that will protect savings from inflation, especially the savings of the poor and middle classes,” the finance minister said.

These could be inflation-indexed bonds or inflation-indexed national security certificates.

“The structure and tenor of the instruments will be announced in due course,” he said.
Chidambaram also announced tax incentives to encourage investments in the housing sector.

He said any person taking a first time home loan up to Rs.25 lakh during the financial year 2013-14 will be allowed an additional tax deduction of interest of up to Rs.1 lakh.
“This will promote home ownership and give a fillip to a number of industries like steel, cement, brick, wood, glass etc, besides jobs to thousands of construction workers,” he said.

Go to Top

More from this section
Most trending stories
Photo Gallery
A worker applies colour to strings which will be used to fly kites, by a roadside in Ahmedabad...

A worker applies colour to strings which will be used to fly kites, by a roadside in Ahmedabad...

A girl collecting fallen Chinar leaves at a Mughal Garden on the out skirts of Srinagar...

A girl collecting fallen Chinar leaves at a Mughal Garden on the out skirts of Srinagar...

Prakash Raj speaks during a press conference to launch a campaign against the social media troll...

Prakash Raj speaks during a press conference to launch a campaign against the social media troll...

Virat Kohli during a practice session in Nagpur ahead of the 2nd test match...

Virat Kohli during a practice session in Nagpur ahead of the 2nd test match...

Bhuvneshwar Kumar during his marriage with the childhood friend Nupur Nagar....

Bhuvneshwar Kumar during his marriage with the childhood friend Nupur Nagar....

Hockey prayers during their first practice session at the Kalinga stadium...

Hockey prayers during their first practice session at the Kalinga stadium...

Yuki Bhambri of India plays against compatriot Prajnesh Gunneswaran...

Yuki Bhambri of India plays against compatriot Prajnesh Gunneswaran...

Sikh devotees paying obeisance at the Golden Temple on the martyrdom day of Guru Tegh Bahadur...

Sikh devotees paying obeisance at the Golden Temple on the martyrdom day of Guru Tegh Bahadur...

Vehicles moving at snow clad road after snowfall in Lahau...

Vehicles moving at snow clad road after snowfall in Lahau...

Sehwag and Kaif at the announcement of the inaugural edition of St. Moritz Ice Cricket...

Sehwag and Kaif at the announcement of the inaugural edition of St. Moritz Ice Cricket...

Like us on Facebook

Copyright 2017, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523
Powered by Yodasoft Technologies Pvt. Ltd.