With an objective to encourage flow of savings of the small investors in domestic capital market, the Government of India (GOI) announced a scheme named Rajiv Gandhi Equity Savings Scheme, 2012 (RGESS) in the Union Budget 2012-13 and further expanded vide Union Budget 2013-14 (Notification dated December 18, 2013) to offer tax benefits to ‘New Retail Investors’.
A ‘New Retail Investors’ is one :
Provided that an 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 and will be considered as new retail investors for the purpose of opening of a fresh RGESS account, if otherwise eligible;
Initial Year means -
Under RGESS, ’New retail Investor‚ can invest upto Rs.50,000 in eligible securities and avail additional tax benefit (i.e., deduction) upto Rs.25,000 under Section 80CCG. This is over and above the limit of Rs.1,00,000 currently available under Section 80C of the Income Tax Act, 1961.
The Scheme is open for all New Retail Investors who have gross total income less than or equal to Rs. 12 lakh.
You can invest in eligible securities. Eligible securities considered for RGESS investment are:
Click here to view List of RGESS eligible stocks / ETFs / MF schemes
RGESS benefits can be availed for three consecutive financial years, beginning with the financial year in which the investment under the Scheme was made for the first time by the investor.