I had already written about the Rajiv Gandhi Equity Saving Scheme (RGESS) in details and also listed down the stocks and Exchange Traded Funds (ETFs) eligible for investment. But I got many questions regarding how one can invest in RGESS. This confusion is understandable because many have not yet dealt with stock market or demat account.
Step 1: Open a Demat Account with any broker like Reliance Money, Sharekhan or with banks like ICICI Direct, HDFC etc. The post on “Which is the best Demat account in India” might be useful for investors looking for demat account.
Step 2: Designate the demat account as RGESS account. If you are opening a new account you can tell the broker/ bank to do it. In case you want to convert an existing demat account to RGESS account, you need to submit Form A to the Demat company. (Download Form A here)
Step 3: Buy the eligible stocks or Exchange Traded Funds (ETFs) through this demat account. This can be done through one transaction or multiple transactions throughout the year. The maximum amount you can get tax benefit is Rs. 50,000.
Step 4: Submit Proof: In case you are salaried you can give the demat account statement copy as proof to your employer. In case you did not show it to your employer or are self-employed you can directly claim tax benefits while filing the income tax return.
By following the above four steps you can easily invest in RGESS and claim tax benefit.
Here is an advertisement from NSDL for Rajiv Gandhi Equity Saving Scheme (RGESS)
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View Comments
Hi Amit,
Can I open one Demat account with a DP and another RGESS with another? I'm trying to start investing in Mutual funds (SBI Magnum global fund). If I'm investing in mutual funds am I eligible to invest in RGESS? Please let me know.
And by the way all your information is so valuable and through your articles and calculators I reduced my monthly tax from 3000 to 800. Thank you very much.
Thank you
Kishore
Its great to know that my blog helped you in reducing your taxes!
Yes you can have multiple Demat account with one of them marked as RGESS. But I would recommend you to have only one demat account as its easier to manage and would be cheaper!
Excellent write-up. I definitely appreciate this site. Keep it up!
Thanks
We have demat A/C which is already have trading of shares.
Is our a/c can be converted to RGESS and tax benfit?
Give us details of conditions of demat a/c holder to join RGESS
You are not eligible for RGESS as you are already trading in shares.
i have demet account but i m opreated my account only for IPO i have invest 2000 per month in SIP
i m eligible for RGESS SCHEME
No you cannot as you have invested in shares through IPO
This is nice information. I was looking to invest in RGESS but was confused about the way forward!
Thanks and good to know it was helpful.