Unmatched benefit for first-time investors
The Rajiv Gandhi Equity Savings Scheme (RGESS) is a new tax benefit scheme introduced for equity investment in select stocks, mutual funds and ETFs as declared by the Ministry of Finance.
Under this scheme, if you are a first time investor with a gross annual income less than `10 lakh, then up to `50,000 of your investments in the stock market will be eligible for tax deduction under section 80-CCG.
Benefits of investing in stocks
When you invest in stocks under the RGESS programme, you not only benefit with the tax savings, but also benefit with your investments in the stock market. Three clear benefits of investing under the RGESS scheme are:
The stock market has given considerable returns over the year. For example, in the last 10 years, from December 2002 to December 2012, Nifty has increased over 4.5 times
Stocks identified as part of RGESS are the top 100 stocks of the country and also include the Maharatnas and mutual funds investing in equities. This means a credible list of investments
Plus Save Tax
Investments up to Rs 50,000 in these stocks are eligible for tax benefit under section 80 CCG. Which means not only do you gain when your stocks appreciate, you also get tax benefits