Press Esc to close
Sunday 24 July 2016
News updated at 4:09 PM IST
Weather
Max: 26.4°C
Min : 19.6°C
In Bengaluru
Generally cloudy

Chidambaram unveils measures to lure people from gold

New Delhi, Feb 28, 2013, (IANS):

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

Photo Gallery
Actress Aindritha Ray performing during Shatha Sambrama -University of Mysore Centenary...

Actress Aindritha Ray performing during Shatha Sambrama -University of Mysore Centenary...

School students sit in the formation of a plane as they pray for the Indian Air Force plane...

School students sit in the formation of a plane as they pray for the Indian Air Force plane...

Indian Army soldiers rescue flood affected villagers near India-Bhutan border of Chirang...

Indian Army soldiers rescue flood affected villagers near India-Bhutan border of Chirang...

Prime Minister Narendra Modi interacting with the children at the launch of the Reliance...

Prime Minister Narendra Modi interacting with the children at the launch of the Reliance...

Flamingos fly over Chandlai Lake in Jaipur on Saturday. Flamingos travel thousands of miles...

Flamingos fly over Chandlai Lake in Jaipur on Saturday. Flamingos travel thousands of miles...

Director Porsche India oavan Shetty with new Porsche 911 car during the launch in Bengaluru...

Director Porsche India oavan Shetty with new Porsche 911 car during the launch in Bengaluru...

Women on a boat wade through flooded area after heavy showers in Mayong village in Morigoan...

Women on a boat wade through flooded area after heavy showers in Mayong village in Morigoan...

Kite club India fly's 300 kite during Kite festival 2016 as the part of Income Declaration...

Kite club India fly's 300 kite during Kite festival 2016 as the part of Income Declaration...

Villagers along with their cattle wade through a Banana raft from the flood affected village...

Villagers along with their cattle wade through a Banana raft from the flood affected village...

A fan sports painting Rajinikanth's Kabali on his body at the release of his new film 'Kabali' ...

A fan sports painting Rajinikanth's Kabali on his body at the release of his new film 'Kabali' ...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523