The Government of India is likely to start Rajiv Gandhi Equity Savings Scheme (RGESS) from 9th February 2013. The finance minister of India, P. Chidambaram will launch the scheme officially.
The RGESS is aimed at attracting the investors to invest in stock markets to get exemption from income tax. Employees who have annuam income of Rs. 10 Lakhs and below can avail this scheme.
The RGESS was announced in the Union Budget 2012 – 2013 by then Finance Minister Pranab Mukherjee. The investor will get tax exemption for the investment of first Rs.50000.
As per the SEBI guidelines, the investments under this scheme will be locked – in for a year. Investor can not redeem or withdraw the amount till the completion of the lock-in period.