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{{Use dmy dates|date=August 2013}}
{{Use Indian English|date=August 2013}}
The '''Rajiv Gandhi Equity Savings Scheme''' (commonly referred to as '''RGESS'''), is a tax saving scheme announced in the 2012-2013 [[Union Budget of India]],<ref>{{cite web|url=http://indiabudget.nic.in/ub2012-13/bs/bs.pdf |title=2012-2013 Union Budget, India |format=PDF |date= |accessdate=2013-02-22}}</ref> aimed at first time retail investors. Named after [[Rajiv Gandhi]], the sixth [[Prime Minister of India]], the scheme was announced by the finance minister, [[P. Chidambaram]], on 21 September 2012.<ref>{{cite web|url=http://businesstoday.intoday.in/story/rajiv-gandhi-equity-savings-scheme-mutual-fund-rgess/1/188294.html |title=Chidambaram clears Rajiv Gandhi Equity Savings Scheme; MFs, ETFs allowed |publisher=Businesstoday.intoday.in |date=2012-09-21 |accessdate=2013-02-22}}</ref> The scheme is aimed at encouraging the flow of savings of small investors in the domestic capital market, and presents investors with tax benefits provisioned as a new section, 80CCG,<ref>{{cite web|url=http://www.bseindia.com/rgess/downloads/Dept_Of_Revenue%20_MoF_Notification%20_November_23_2012.pdf |title=80CCG 23rd November 2012, Government of India |format=PDF |date= |accessdate=2013-02-22}}</ref> in the [[Income Tax in India|Income Tax act]]. The [[2017 Union budget of India]] has proposed that the scheme be phased out entirely by 2018, citing the lack of adoption.<ref>{{Cite news|url=http://economictimes.indiatimes.com/mf/mf-news/finance-minister-proposes-to-phase-out-rgess-in-budget-2017/articleshow/56917173.cms|title=Finance Minister proposes to phase out RGESS in Budget 2017 - The Economic Times|work=The Economic Times|access-date=2017-03-29}}</ref>

==Objective==
RGESS was introduced with the goal of encouraging savings from small retail investors to enter domestic capital markets. The scheme also aims at improving the retail participation in equity markets, and to promote an ‘equity culture’ in India.
Basically its one of the best investment in tax saving in India.{{Citation needed|date=January 2014}}

==Eligibility==
The scheme can be availed by Indian residents with an annual income not exceeding Rs: 12 lakhs. In addition, for a person to be eligible, he should not have had a [[Demat account]] prior to 23 November 2012, or should only have a Demat account that has never been used to trade. There is a lock in period of three years. <ref>{{cite web|url=http://www.moneycontrol.com/news/mf-experts/faqsnew-rajiv-gandhi-equity-savings-scheme_824804.html |title=New Rajiv Gandhi Equity Savings Scheme |publisher=moneycontrol.com |date=2013-08-14}}</ref>

==Benefits==
RGESS permits investments totalling up to a maximum of Rs: 50,000, of which, 50% is tax deductible. The maximum possible tax savings is Rs: 5150. In addition, the scheme is provisioned to provide the tax break over the Rs: 1.5Lakhs.

==Eligible securities==
The securities eligible for investments under the scheme are equities listed in [[Bombay Stock Exchange|BSE]] 100 or CNX 100, shares of public sector companies categorised by the Government as [[Navratna|Maharatna]], [[Navratna]], or [[Navratna|Miniratna]]. Select [[Exchange-traded fund|ETFs]] and [[Mutual funds]], and [[Initial public offering|IPOs]] of public sector undertakings fulfilling certain criteria,<ref>{{cite web|url=http://www.bseindia.com/rgess/eligible_securities.htm |title=Eligible Securities |publisher=BSE India |date= |accessdate=2013-02-22}}</ref> are also eligible.

==References==
{{Reflist}}

==External links==
* [http://www.bseindia.com/rgess/ BSE India on RGESS]
* [http://www.bseindia.com/indices/IndicesWatch_Weight.aspx?iname=BSE100&sensid=100&type=SENS&graphpath=/applet/images/graf_appBSE100.gif List of BSE 100 stocks]
* [http://economictimes.indiatimes.com/news/economy/policy/budget-2013-fm-expands-rajiv-gandhi-equity-savings-scheme/articleshow/18725674.cms FM Expands RGESS]
[[Category:Tax-advantaged savings plans in India]]

Rajiv Gandhi Equity Savings Scheme - Revision history

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