WHAT IS RAJIV GANDHI EQUITY SAVINGS SCHEME (RGESS)?
Rajiv Gandhi Equity Savings Scheme, 2012 (RGESS) is a scheme announced by the Government of India to encourage flow of savings of small investors into the equity capital market. Under RGESS, new retail investors in equities, with gross total income less than or equal to ` 10 lakhs, could claim deduction of 50% for investments upto ` 50,000 in RGESS eligible securities. Investors also have to comply with certain other requirements to be eligible for this benefit.
Tax Benefits will be available only to “New Retail Investors”. These include the following resident individuals:
(a) Any individual who has not opened a demat account and has not made any transactions in the derivative segment as on the date of notification of the RGESS;
(b) Any individual who has opened a demat account before the notification of the RGESS but has not made any transactions in the equity segment or the derivative segment till the date of notification of the RGESS, and any 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
(c) Any individual whose Gross total income for the Financial Year in which the investment is being made is less than or equal to ` 10 lakh.
Note: Please refer to the RGESS, 2012 notified by the Central Government on November 23, 2012 and SEBI Circular number CIR/
MRD/DP/32/2012 dated December 06, 2012 for additional details or consults your financial advisor to learn more.