You could get tax benefits of up to Rs 2 lakh under scheme replacing RGESS

The conditions for availing of tax benefits under the new scheme expected to be less rigorous

The government is planning to come out with a new scheme to replace the Rajiv Gandhi Equity Savings Scheme (RGESS), which was discontinued in Budget 2017. The new scheme is expected to enhance the maximum amount you can invest for availing of tax benefits to Rs 2 lakh, compared with Rs 50,000 under RGESS.

Many of the pre-conditions attached to RGESS, which had contributed to its failure to take off, may be relaxed in the new scheme. Even existing demat account holders may be allowed to invest in it, provided their annual transaction level does not exceed a certain limit.