Expense Account, Mint
Take a 1970s French scheme that “worked” in what are now seen as medieval times in finance. Add a government department desperate for a new idea, having botched up the retail part of the financial market by creating situations where regulators fight and investors get swindled. And you get the proposed Rajiv Gandhi Equity Savings Scheme (RGESS) that gives a tax break to small investors who invest directly in equity. The scheme will give first time equity investors who earn upto Rs10 lakh a year, that is Rs83,333 a month, or a post-PF and tax amount of about Rs50,000 a month, a 50% deduction on investment up to Rs50,000 directly into stocks.