Rajiv Gandhi Equity Savings Scheme Tax Benefits

Since the last date of the financial year 31st, March is approaching, many Mutual funds, brokerage house, and Insurance companies are aggressively promoting their products in a bid to attract income taxpayers who like to save tax. Particularly, Mutual funds and brokers like ICICI Direct are trying to improve their tax saving options, like ELSS, Infra bonds, etc. Recently I receive an email from ICICI direct regarding one of the lesser used tax saving option, Rajiv Gandhi Equity Saving Scheme (RGESS),  which inspired me to write this post.

Though I know about this tax-saving option, I really liked their short and sweet presentation, here I am sharing the same tips for your benefit. You can directly invest in these options if you have an ICICI direct account, but you can also do individually onto each scheme by going to their respective sites or providers.

Rajiv Gandhi Equity Savings Scheme

In addition to deduction available under section 80 C, all individual taxpayers with income under 12 lakhs who are first-time investors and can benefit from the Rajiv Gandhi Equity Savings Scheme (RGESS).



A maximum of  Rs 50,000 can be invested in approved stocks, and mutual funds and the taxpayer can claim 50 percent of the amount as the tax deduction under Section 80CCG. A maximum amount allowed for deduction is INR 25,000. The maximum tax saving possible under the RGESS will be  5,150/-, in addition to the allowable deduction under section 80C or ELSS.

You can read more about it on ICICI direct campaign page here.

Tax Benefits Rajiv Gandhi Equity Savings Scheme:

Here are some important tax benefits of investing in Rajiv Gandhi Equity saving scheme in India:

1.  Allowable deduction of 50% on a maximum investment of up to 50,000 in approved stocks or mutual fund Tax
2.  Lock-in of 3 years with a blanket lock-in of 1 year
3.  Investors can trade after 1 year with certain restrictions.

So, what are you waiting for? If you have not exhausted your tax deduction limit of 1.5 lakh or not done with other tax saving options, you should do it before this financial year end. You must save tax after it's your hard earned money. It also improves your knowledge of income tax, so do your research and make some tax saving investments.

Other NRI Income tax articles you may like

• 3 Income tax benefits of opening NRI accounts in India
• 13 ways to save income tax in India
• 10 Income tax deductions and exemptions NRIs should know
• How NRIs can file their income tax returns online
• Is NRIs overseas income taxable in India
• How much TDS is deducted on NRO account?
• Is it mandatory to file income tax returns for NRIs?
• Is it mandatory for NRIs to declare foreign bank accounts on tax returns?
• How to determine the residential tax status of NRIs?
• 10 points NRIs should know about Income tax?
• Is Aadhaar card Mandatory for filing an Income tax return for NRIs?

Thanks for reading this article so far, if you find this information useful then please share with your friends and colleagues. If you have any questions or feedback, then please drop a note.