The very popular and widely accepted equity mutual fund scheme is RGESS i.e. Rajiv Gandhi Equity Savings Scheme. It is one of the best tax saving schemes in India. This scheme was named after our former Prime minister, Shri Rajiv Gandhi. It was announced in 2012- 2013 by the Government of India.
It provides tax benefits to the first time investors. The maximum possible tax that can be saved is Rs 5,150.There is a lock-in period three years (a fixed lock in period of 1 year and a flexible lock in period of 2 years)
With this scheme government of India aimed to encourage the small investors to invest in the capital market and save their funds. Rajiv Gandhi Equity Saving Scheme promotes the equity culture in India
The tax benefits are provided under section, 80CCG of the Income Tax act.
How Can You Invest in RGESS
- The scheme is available if you are a resident of India.
- Your annual income should not exceed Rs: 12 lakhs.
- You should not a Demat account prior to 23 November 2012.
- If you have a Demat account, it should not be used for trade.