InvestorQ : What are the special incentives for investors under the Rajiv Gandhi Equity Savings Scheme (RGESS)?
Anu Biswas made post

What are the special incentives for investors under the Rajiv Gandhi Equity Savings Scheme (RGESS)?

Answer
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Neelam Naik answered.
1 year ago


The Rajiv Gandhi Equity Savings Scheme (RGESS) is aimed at encouraging small investors to channelize their savings into domestic capital markets. The Rajiv Gandhi Equity Savings Scheme (RGESS), is a tax saving scheme announced in the Union Budget 2012-13 and further expanded in the Union Budget 2013-14. The scheme is designed exclusively for first time individual investors in the stock market, whose gross total income for the year is below a certain limit. In 2013-14, the income ceiling of the beneficiaries was raised to Rs. 12 lakh from Rs. 10 lakh. The investor would get under Section 80CCG of the Income Tax Act, a 50% deduction of the amount invested during the year, up to a maximum investment of Rs. 50,000 per financial year, from his/her taxable income for that year, for three consecutive assessment years. That means on an investment of Rs.50,000, a sum of Rs.25,000 will be eligible as exemption and on that nearly 30% will be available as tax benefit if you are in the peak tax bracket.