The government is considering a new and potentially more attractive equity savings scheme to replace one that was scrapped this year following a tepid investor response.
The new scheme will offer more flexibility and greater limits than the Rajiv Gandhi Equity Savings Scheme (RGESS), said two people with direct knowledge of the development.
For one, the government is looking to enhance the investment limit eligible for tax benefits under this scheme to Rs2 lakh, four times the RGESS limit. Secondly, the stringent entry norms prescribed by RGESS may be done away with, these people said on condition of anonymity.
