Budget 2017: RIP - Rajiv Gandhi Equity Savings Scheme

The scheme was launched by the UPA govt to incentivise first-time investors to invest in equities

The government has decided to end the Rajiv Gandhi Equity Savings Scheme (RGESS) under which first-time investors in equities could enjoy tax deduction up to Rs 25,000 for three successive years under Section 80CCG. 

According to the Budget documents, the government has decided to jettison the scheme due to its failure to gain popularity among investors. 

However, an assessee who has claimed deduction under this section for the assessment year 2017-18 and earlier assessment years shall be allowed deduction under it until the assessment year 2019-20. 

Financial planners said that they did not recommend the scheme to their clients because of