Rajiv Gandhi Equity Saving Scheme

Effective 1 April 2013, investors with a gross total income of up to Rs.12 lakh can invest in RGESS, up from an earlier income limit of Rs.10 lakh. Investors can park funds in MFs and listed shares and extended tax benefits to three successive years.

Who can invest in RGESS?	New retail investors with an annual income of less than 10 lakhs.
How much can I invest?	The maximum amount eligible for claiming benefit under RGESS is Rs. 50,000.
Tax Benefit	Deduction u/s 80 CCG, is available on 50% of the amount invested. The benefit is in addition to deduction available u/s Sec 80C.
Lock-in Period	3 years. Fixed lock-in during first year followed by a flexible lock-in for subsequent two years.

To invest in RGESS MF’s you need to have a Basic Services Demat Account (BSDA) and also a Mutual Fund account.
Post that you can login to your FundsIndia.com a/c and make the payment for the RGESS funds that you have selected before.

Quick Facts About RGESS
Who can invest : New equity investors with an annual income less than 10 Lakh
Investment amount : 50,000 (maximum amount one can invest under the scheme)
Deduction available on : 25,000 (50% of 50,000)
Maximum benefit : 5,000 (investors with an annual income of 10 Lakh fall under the 20% income tax slab)
Lock in period : 3 years (to get a tax deduction over & above Section 80C)

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