The Scheme, as such, is designed for only the first time new investors. Since they can be ?ew?only in the first year of entering the market, the benefits of the Scheme is limited to only one year for a particular beneficiary, i.e., the tax benefit can be availed of only to the extent of investments made in a single financial year in which the investor makes the first RGESS eligible investment after opting for the RGESS account.

The limitation of one year also arises from clause 2 of Section 80CCG as given below, which was inserted vide, Finance Act, 2012 in the Income Tax Act, 1961 80CCG (2) Where an assessee has claimed and allowed a deduction under this section for any assessment year in respect of any amount, he shall not be allowed any deduction under this section for any subsequent assessment year.

However, considering the financial constraints of the small retail investors, the flexibility to invest in installments in the first financial year is provided in the Scheme.

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