Rajiv Gandhi Equity Savings Scheme – RGESS – Tax Saving Option
Rajiv Gandhi Equity Savings Scheme (RGESS) – this new tax saving scheme was introduced in 2012 Budget to attract retail investors to invest in Equity, directly or indirectly. RGESS scheme was introduced in 2012 budget, but the details of this scheme were made available only in Sep 2012.
Presently, only 3-4% of Indian household savings is going into equities as compared to 42% in the US and 14% in China
How much is the Tax Benefit?
Under section 80CCG of the IT act 1961, an investor will get a tax deduction of 50% on the Investments made under RGESS. However, the maximum investment amount eligible for deduction is Rs 50, 000 or maximum tax exemption of Rs 25000.
This tax exemption is over & above limit of Rs 1 lakh under section 80C. See my other post on - Tax saving op...