InvestorQ : What is the eligibility for an individual investor to invest in the ELSS scheme?
Anu Biswas made post

What is the eligibility for an individual investor to invest in the ELSS scheme?

Answer
user profile image
Neelam Naik answered.
1 year ago


Only new and first time retail investors with an annual income of less than 12 lakhs are eligible to invest in the RGESS scheme. The maximum amount eligible for claiming benefit under RGESS is Rs. 50,000 per financial year for three consecutive years starting from the initial year in which the investment is made. Deduction u/s 80 CCG is available on 50% of the amount invested. The benefit is in addition to deduction available u/s Sec 80C.

The Scheme is open for all New Retail Investors who have gross total income less than or equal to Rs. 12 lakh. A new retail investor is defined as a person: who is a resident individual (the benefit cannot be availed by HUF, corporate entities / trusts etc) and who has not opened a Demat account and has also not done any trading in the derivative segment till RGESS account opening date or the first day of the “initial year” in which he brings in the RGESS eligible investment into the account, whichever is later. An eligible person could also be someone who has opened a Demat account and has not made any transactions in equity and /or in the derivative segment till designating such account as RGESS or the first day of the “initial year” in which he brings in the RGESS eligible investment into the account, whichever is later.