RGESS (Rajiv Gandhi Equity Savings Scheme)

• Tax benefits for investing up to Rs 50,000 in the capital markets for first-time retail investors with an annual income of Rs 10 lakh. 
• The scheme initially announced in Budget 2012 had allowed tax benefits for investments in stocks. Later, Exchange Traded Funds (ETFs) and MFs were included under its ambit. 
• Open to retail investors who have opened demat accounts but have not made any transactions in equity or derivatives till the notification of the scheme. 
• Open to retail investors who have opened demat accounts but have not made any transactions in equity or derivatives till the notification of the scheme. 
• All those opening fresh accounts would also be eligible to participate in RGESS. 
• Investments can be made in various installments during a year.
• Total lock-in period: 3 years,including an initial lock-in of one year in the stock/ETF/MF in which the money has been invested. 
• Stocks listed under BSE 100 or CNX 100 or those of PSUs which are Navratnas, Maharatnas and Miniratnas would be eligible. 
• Investment in follow-on offers of these companies would also be eligible for tax deduction.