Who is Eligible for Rajiv Gandhi Equity Savings Scheme?

The ambiguity around the Rajiv Gandhi Equity Savings Scheme (RGESS) is that who is eligible for it to invest to get the income tax benefit. The salient difference between equity linked saving scheme and Rajiv Gandhi Equity saving scheme is as given in screenshot.

Just to put it in layman language we can say that it is an equity based scheme and the investments made under the scheme are eligible for deduction under Section 80CCG. However here a catch lies as every individual is not eligible for this scheme.

Salient features of this scheme are as given below:

• New retails investors (those who have no exposure in the equity market so far) are eligible to invest in this scheme
• Individuals who did not have demat account prior to 23/11/12 in the capacity of a first account holder will be eligible for this scheme.
• The investor can invest up to 50,000 in this scheme and claim tax exemption on 50% of the invested amount. 
• Just remember that this deduction is over and above the deduction available under Section 80C.

You can either make use of this scheme or use our free stock market tips and make money every day in share bazaar.