(I) Introduction to Rajiv Gandhi Equity Savings Scheme, 2012 1) What is Rajiv Gandhi Equity Savings Scheme, 2012 (RGESS)? With an objective to encourage flow of savings of the small investors in domestic capital market, the Government of India announced a scheme named Rajiv Gandhi Equity Savings Scheme, 2012 (RGESS). 2) Does RGESS offer any tax benefits? A new section 80CCG under the Income Tax Act, 1961 on ‘Deduction in respect of investment under an equity savings scheme’ has been introduced to give tax benefits to ‘New Retail Investors’ who invest up to `50,000 in ‘Eligible Securities’ and have gross total annual income less than or equal to Rs.10 Lakhs. 3) Who is a ‘New Retail Investor’? A ‘New Retail Investor’ is any resident Individual ü who has not opened a demat account and has not made any transactions in the equity or derivative segment as on the date of notification of the scheme i.e., November 23, 2012. OR ü who has opene
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