How to invest in Rajiv Gandhi Equity Savings Scheme?
This RGESS scheme would give tax benefits to new investors who invest up to Rs 50,000 and whose annual income is below Rs. 10 lakh. Deduction available is Rs 25000 for investing upto Rs 50,000.
Rajiv Gandhi Equity Savings Scheme
How to invest?
Step 1: You need to open demat account with NDSL or CDSL through a depository participant.
Step 2: Designate the demat account as a RGESS account. In case you have a demat account where you haven't traded, then you should designate that account as a RGESS account. You can use the Form A for this purpose.
Step 3: You can start purchasing eligible stocks across the year. Please note that there are only a certain eligible stocks and you cannot buy all and sundry.
Claim tax benefits under Section 80 CCG when you file your Income Tax returns.
As with other tax savings schemes the investment made under RGESS has a compulsory lock-in for the first year, while, subsequent two years, the investment is subject to a flexible lock-in.
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.
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