I am investing in Equity Linked Savings Scheme (ELSS) via a Systematic Investment Plan (SIP) every month since the last four years. I am taking income tax advantages of these investment under Section 80C. I have recently found out that some mutual funds offer RGESS. I would like to invest in them and claim the tax benefits. Can I take advantage of Section 80C (for ELSS investment) and Section 80CCG (for RGESS investment) together for the current financial year?
- Aravind Kaushik
Rajiv Gandhi Equity Saving Scheme or RGESS is meant for new investors to the stock market who have never traded in equity through a demat account. However, investors in equity mutual schemes and those holding physical share certificates are eligible to invest in RGESS. That means if you have never invested in stocks through a demat account, you can claim deductions on investments under both Sections. Investments in RGESS are capped at ₹50,000 per individual, with a tax deduction of 50 per cent on the amount invested.
This article was originally published on January 11, 2016.
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