The Centre has approved a new tax saving scheme called the ‘Rajiv Gandhi Equity Savings Scheme, with a view to provide tax benefits. The Finance Ministry, in its statement, said that the scheme is exclusively for first time retail investors in the securites market with annual income of below 10 lakh rupees in a financial year. The maximum investment permissible under the scheme is 50 thousand rupees and the investor would get a 50 per cent deduction of the amount invested from the taxable income for that year. The scheme will not only encourage the flow of savings and improves the depth of domestic capital markets, but also aims to promote an equity culture in the country. To benefit the small investors, the investments are allowed to be made in installments in the year in which tax claims are made.