If you are a first time Investor who is eligible under the scheme and are interested in investing, then this is just the thing for you. The Rajiv Gandhi Equity Scheme (RGESS) allows first time investors who invest through the scheme to claim up to 50% deduction, on up to Rs. 50,000 of investments in the stock market for 3 consecutive years. Now, you not only reap the benefits of investing but also save a great deal on taxes.

What are the Tax benefits under the scheme?
Eligible investor would receive a 50 percent deduction of the amount invested each year from the taxable income for three consecutive years under section 80 – CCG. A maximum investment of Rs. 50000 per year will be eligible for deduction, as per the calculation, mentioned above. This amount is over and above the benefit of up to Rs. 1 lakh currently available under Section 80 C.