What is RGESS?
Rajiv Gandhi Equity Savings Scheme or RGESS was an equity tax advantage savings scheme for equity investors in India, with the stated objective of "encouraging the savings of the small investors in the domestic capital markets." It was approved by former Union Finance Minister, Shri. P. Chidambaram on September 21, 2012. It was exclusively for the first time retail investors in securities market. This scheme gave tax benefits to new investors who invested up to Rs. 50,000 and whose annual income was below Rs. 12 lakh. In 2013-14, the income ceiling of the beneficiaries was raised to Rs. 12 lakh from Rs. 10 lakh specified in 2012-13. However, in the UNION BUDGET for 2017-18, the government decided to end the Rajiv Gandhi Equity Savings Scheme (RGESS). (DP2017-305 20-Jun-2017 NOTIFICATION ON THE RAJIV GANDHI EQUITY SAVINGS SCHEME 2012)