|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.
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.
The Scheme not only encourages the flow of savings and improves the depth of domestic
capital markets,but also aims to promote an 'equity culture' in India. This is also expected to
widen the retail investor base in the Indian securities markets.