RGESS

Rajiv Gandhi Equity Saving Scheme

Mytaxcafe Help Guide

Learn how to Invest & Save Taxes by

investing in RGESS

The tax benefits for investments under RGESS are

covered under section 80CCG of The Income Tax Act.

Section 80CCG

Of the Income

Tax ActRGESS

Who can claim Section 80CCG deductions?

With Gross Total Income

less than or equal to

Rs. 12,00,000.

Has to satisfy the terms

and conditions of

Investment under

RGESS

An individual :

Conditions specified in RGESS?

You must have a DEMAT account. If you don’t have it.

Open it now!

1

Conditions specified in RGESS?

If you are a 1st holder of demat account then you

should not have been involved in any equity and

derivative transactions on or before 23rd November

2012.

2

Conditions specified in RGESS?

If you are the 2nd joint holder of a demat account then

open a new Demat Account as First Joint holder

3

How to Invest in RGESS?

You have a Demat Account.

You fulfill the previous

conditions.

Step 1: Ensure the following:

How to Invest in RGESS?

For this you have to approach your

Depository Participant along with Form-A

(specified under the rules of RGESS

2012) and a copy of PAN card.

If you don’t have a demat account or if

you are the second holder of an existing

demat account then approach

Depository Participant for opening a

new RGESS designated Demat Account.

Step 2: Link your Demat Account to RGESS

What are the eligible securities specified in

RGESS?

EQUITY SHARES

Which are listed

in BSE 100 and

CNX 100 indices

Of Public Sector Units

which are categorized

as Maharatna,Navratna

or Miniratna.

1

What are the eligible securities specified in

RGESS?

New fund offers (NFOs) & Existing Units

of Mutual Fund or exchange-traded

Funds with RGESS-eligible securities

as underlying.

2

Eligible deductions allowed under

Section 80CCG?

An individual is allowed a

deduction of 50% of amount

of invested in RGESS

or Rs. 25,000/- whichever is

less.

Eligible deductions allowed under

Section 80CCG?

Note : An individual can claim deduction under

section 80CCG only for 3 consecutive years.

Thereafter from the 4th year he will not be

treated as new retail investor and therefore he

will not be allowed deduction from 4th year

even if he has invested in RGESS prescribed

securities.

Eligible deductions allowed under

Section 80CCG?

The lock in period for amount invested in

RGESS is 3 years.

If the individual sells any investment made

under RGESS and for which the deduction

under section 80ccg was claimed in previous

year then such deduction shall be reversed and

shall be treated as the income of the individual

for the relevant previous year.

GOT ANY QUESTIONS?

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Income Tax efiling

Section 80 Deductions

How to Save taxes

Investment Schemes

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