Learn all about RGESS- deductions, eligibility conditions and investment ways.

1. RGESS
Rajiv Gandhi Equity Saving Scheme
Mytaxcafe Help Guide
Learn how to Invest & Save Taxes by
investing in RGESS

2. The tax benefits for investments under RGESS are
covered under section 80CCG of The Income Tax Act.
Section 80CCG
Of the Income
Tax Act
RGESS

3. 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 :

4. Conditions specified in RGESS?
You must have a DEMAT account. If you don’t have it.
Open it now!
1

5. 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

6. 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

7. How to Invest in RGESS?
You have a Demat Account.
You fulfill the previous
conditions.
Step 1: Ensure the following:

8. 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

9. 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

10. 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

11. 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.

12. 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.

13. 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.

14. GOT ANY QUESTIONS?
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