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RajivGandhiEquitySavingsScheme
FromWikipedia,thefreeencyclopedia

TheRajivGandhiEquitySavingsScheme(commonlyreferredtoasRGESS),isataxsavingschemeannouncedinthe20122013Union
BudgetofIndia,[1]aimedatfirsttimeretailinvestors.NamedafterRajivGandhi,thesixthPrimeMinisterofIndia,theschemewasannounced
bythefinanceminister,P.Chidambaram,on21September2012.[2]Theschemeisaimedatencouragingtheflowofsavingsofsmallinvestors
inthedomesticcapitalmarket,andpresentsinvestorswithtaxbenefitsprovisionedasanewsection,80CCG,[3]intheIncomeTaxact.

Contents

1 Objective

2 Eligibility

3 Benefits

4 Eligiblesecurities

5 References

6 Externallinks

Objective
RGESSwasintroducedwiththegoalofencouragingsavingsfromsmallretailinvestorstoenterdomesticcapitalmarkets.Theschemealso
aimsatimprovingtheretailparticipationinequitymarkets,andtopromoteanequitycultureinIndia.Basicallyitsoneofthebestinvestment
intaxsavinginIndia.

Eligibility

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TheschemecanbeavailedbyIndianresidentswithanannualincomenotexceedingRs:12lakhs.Inaddition,forapersontobeeligible,he
shouldnothavehadaDemataccountpriorto23November2012,orshouldonlyhaveaDemataccountthathasneverbeenusedtotrade.
Thereisalockinperiodofthreeyears.[4]

Benefits
RGESSpermitsinvestmentstotallinguptoamaximumofRs:50,000,ofwhich,50%istaxdeductible.Themaximumpossibletaxsavingsis
Rs:5150.Inaddition,theschemeisprovisionedtoprovidethetaxbreakovertheRs:1.

Eligiblesecurities
ThesecuritieseligibleforinvestmentsundertheschemeareequitieslistedinBSE100orCNX100,sharesofpublicsectorcompanies
categorisedbytheGovernmentasMaharatna,Navratna,orMiniratna.SelectETFsandMutualfunds,andIPOsofpublicsectorundertakings
fulfillingcertaincriteria,[5]arealsoeligible.

References
1."20122013UnionBudget,India"(PDF).Retrieved20130222.
2."ChidambaramclearsRajivGandhiEquitySavingsSchemeMFs,ETFsallowed".Businesstoday.intoday.in.20120921.Retrieved20130222.
3."80CCG23rdNovember2012,GovernmentofIndia"(PDF).Retrieved20130222.
4."NewRajivGandhiEquitySavingsScheme".moneycontrol.com.20130814.
5."EligibleSecurities".BSEIndia.Retrieved20130222.

Externallinks
BSEIndiaonRGESS(http://www.bseindia.com/rgess/)
ListofBSE100stocks(http://www.bseindia.com/indices/IndicesWatch_Weight.aspx?
iname=BSE100&sensid=100&type=SENS&graphpath=/applet/images/graf_appBSE100.gif)
FMExpandsRGESS(http://economictimes.indiatimes.com/news/economy/policy/budget2013fmexpandsrajivgandhiequity
savingsscheme/articleshow/18725674.cms)

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Categories: TaxadvantagedsavingsplansinIndia MemorialstoRajivGandhi

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