The RGESS or Rajiv Gandhi Equity Savings Scheme is a tax advantage savings scheme for first-time retail equity investors in India with annual incomes below Rs. 12 lakh. It provides tax benefits for new investors who invest up to Rs. 50,000 in securities. Eligible investors must not have had an existing demat account or have traded in equities or derivatives before November 23, 2012. Investments made under RGESS are subject to a fixed one-year lock-in period from the date of purchase, followed by a flexible two-year lock-in where the investment value must be maintained for 270 days each year.

2. Equity Scheme For Saving-RGESS
To Save Tax
Overview->Detail->Example
Investment

3. Investment Declaration Form:

4. Overview
• Rajiv Gandhi Equity Savings Scheme or RGESS is a new 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 The Union Finance Minister, Shri. P.
Chidambaram on September 21, 2012.

5. Beneficiaries
• It is exclusively for the first time retail investors in securities
market. This Scheme would give tax benefits to new investors
who invest up to Rs. 50,000 and whose annual income is
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.

6. Eligibilty
• Demat Account not opened. If opened but not transacted in
equity or F&O, derivatives before November 23, 2012.
• Resident Individual
• Gross total annual Income less than Rs.10 Rs.12 lakh.

7. Lock In Concept
• The eligible securities brought into the demat account will be
automatically locked-in from the date of investment till one
year from the date of last purchase of RGESS eligible
securities. This period is called ‘Fixed Lock-in’ during which
you cannot pledge or sell these securities.
• Holding Period = 3 Years
• Fixed lock-in Period = 1 Year from the date of credit
• Flexible lock-in Period = 2 Years from the end of Fixed lock in
period
• During subsequent two years called as Flexible Lock-in, you
can sell and buy RGESS securities. However, you will have to
maintain the value of RGESS investment for cumulative period
of 270 days during each of these two years.

11. Investments are Bought in at once

12. Investment Securities Bought in
at different Time

14. Questions?

15. Answer….
What maximum amount of
money can you invest in
RGESS?

16. Feedback