Rajiv Gandhi Equity Savings Scheme, 2012 (RGESS)

To encourage the flow of savings of small investors into the domestic capital market, the Government of India announced a scheme named Rajiv Gandhi Equity Savings Scheme, 2012 (RGESS) in the last budget.Also a  new section 80 CCG under the Income Tax Act, 1961 on ‘Deduction in respect of investment under an equity savings scheme’ was introduced to give tax benefits to “New Retail Investors”who invest up to `50,000 in ‘Eligible Securities’ and have a gross total annual income less than or equal to Rs.10 Lakhs.

A ‘New Retail Investor’ for the purposes of this scheme is defined as  is any Resident Individual

• who has not opened a demat account and has not made any transactions in the equity or derivative segment as on the date of notification of the scheme i.e., November 23, 2012. OR
• who has opened a demat account as a first holder, but has not transacted in the  equity or derivate segment till November 23, 2012.OR
• who has a demat account as a joint holder.  

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