Rajiv Gandhi Equity Savings scheme notified

Rajiv Gandhi Equity Savings Scheme (RGESS), to encourage small investors to channelise their savings into domestic capital markets, has been notified by the Central Board of Direct Taxes (CBDT).

The scheme has been framed consequent to the introduction of Section 80-CCG in the Finance Act 2012.

Under this scheme, a one-time deduction for income tax purposes will be available to a “new retail investor.”

The new retail investor will be eligible for a deduction on the actual amount invested in ‘eligible securities’ in the first financial year, subject to maximum deduction limit of Rs 50,000.