New innovative schemes are launched by the govt to provide a fillip to the stock market and one such scheme in the league is Rajiv Gandhi Equity Savings Scheme (RGESS).
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.
You can get beenfit only if you satisfy following criterion:
- You are a new investor/trader.
- Your income is less than 10 Lakh per annum.
- You should not have had made any transactions in equity or derivatives before November 23, 2012.
Have a look at below screenshot which shows that how as a new investor in the market, you can get benefitted by saving less income tax.
As a new trader you can invest in ETFs, Maharatna, Navratna, BSE 100, NSE CNX 100 and mutual funds allowed in the scheme are HDFC Rajiv Gandhi Equity Savings Scheme and UTI Rajiv Gandhi Equity Saving Scheme