4 Steps to invest in Rajiv Gandhi Equity Saving Scheme (RGESS) under 80CCG

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.

Here are steps for investing in RGESS:

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.

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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.

4 Steps to invest in Rajiv Gandhi Equity Saving Scheme (RGESS)

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)

RGESS – Rajiv Gandhi Equity Saving Scheme
Amit

Hi Readers! I am Amit, the mind behind Apnaplan.com I am MBA from NITIE, Mumbai and BIT from Delhi University. This blog is my online diary where I write about my tryst with my investment decisions. In the 400+ posts on this blog you will find articles on Personal Financial Planning, Investments, Retirement Planning, Insurance, Loans, Fixed Deposits, Provident Funds, Stock Markets, Gold, Silver, Real Estate Investment, Credit Cards, Credit Score, Taxation, Inheritance Planning and Reviews on various Financial Products.

View Comments

    • No it has been discontinued. However if you had invested in previous year, then you can continue to invest for next 2 years!

    • Yes you can provided you satisfy other eligibility conditions. Also remember RGESS would not be available from next financial year!

  • I have demat ac with HDFC,not operated yet , Can I convert this to RGESS to get tax benifit ,if yes then whom to approach and go ahead

    • Yes you can convert the HDFC Demat account to RGESS and claim tax benefit on the same. You need to fill RGESS FORM-A and submit the form to your nearest HDFC Bank or HDFC securities office.

      The awareness about RGESS is low and so you might need to speak to senior person in the bank - in case you face any issues.

  • Hi!
    I have a demat account in SBI which is 6 years old. I had invested in some infra bonds in 2011. I have started investing in equity and mutual fund in this financial year(2015-16) only. Can I make my demat account RGESS enabled? If not , can I open an account in the name of my child or wife and make that RGESS enabled and claim tax benefit?

    • You are eligible to invest in RGESS for tax benefit, in case you fulfill the income criteria.

      You cannot invest in the name of Wife/Children to get RGESS tax benefit. The demat account should be on tax payers name.

      • Thanks for the information. So I need to request bank to make my demat account RGESS enabled and start investing in listed shares. Can you help me with the link where I can find the listed shares. Recently I have kept some amount in Indigo IPO, will that be considered ?

        • I further looked into the eligibility criteria for RGESS and came across this FAQ from Ministry of Finance. You must look at Question no - 22 to get your answers!
          RGESS is anyway complex scheme and the eligibility criteria makes it even more complex :)

  • Sir, I have opened Demat account six month ago with SBI. I didn't trade any shares till now. I want to know i am eligible for RGESS Scheme or not. If I am Eligible, Kindly Send me Procedure to start RGESS.

    • You would be eligible for RGESS if your taxable income is less than Rs 12 lakhs and the demat account has been opened after November 23, 2012. You will need SBI to mark the demat account as RGESS and then you can invest in eligible Mutual Funds and Stocks. Get more details here.

  • Hi Sir,I have opened Demat account with ICICI-Direct 6 months ago.As part of understanding the stock trading,I had done intra day trading of only 1 stock & since then I never had traded through the Demat account.I would like to know if I can now invest through RGESS now.If Yes,then what is the procedure?Pls advise.

    • You should be eligible for RGESS tax exemption. This is bit complicated scheme and I would recommend you to invest in RGESS schemes launched by mutual funds. Read about RGESS Scheeme to know more.

  • I have open a demat account with SBICAPS under RGESS scheme. I would like to trade in the shares which are not a part of BSE100. Can I trade these shares in same demat account or I will have to open another account. How I can differentiate shares under RGESS scheme and others.

    • Yes you can use the same Demat account for trading in shares not eligible for RGESS.

      Suppose you have 10 shares of ONGC in RGESS Portfolio, then you can add more of ONGC which is not part of RGESS. You can further sell these shares but maintain 10 shares of ONGC in Demat account after buying/selling. Though the rules give more leeway in transactions but I would recommend to maintain the minimum number of shares of RGESS portfolio even if you are transacting in the same shares.

  • Hello Amit,

    I'm already investing 2000 per month in SBI mutual fund. Am I eligible for this RGESS scheme? I don't have a demat account till now.

    Kishore

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Amit

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