The Union Budget 2017 has proposed to discontinue the benefit of deduction for investments in the Rajiv Gandhi Equity Savings Scheme (RGESS). The scheme was introduced in the Union Budget of 2012. Currently, the scheme provides tax deductions under section 80CCG of the Income-tax Act, 1961. After the first year, in the Union Budget of 2013, the minimum income threshold was increased to Rs12 lakh per annum. The reason behind discontinuing the deduction may be against investments in RGESS could be the declining interest of investors in the scheme.

Source: Mint February 02, 2017 11:26 UTC