GOLD MONETIZATION SCHEME, 2015.
Gold lying in the locker appreciates in value if gold price
goes up but such gold
doesn't pay the investor a regular
interest/dividend. Further, the
investor incurs carrying cost for safe storage of such gold (ie locker
For providing the investors an opportunity to earn regular
interest on their gold, the Government of India has introduced
the Gold Monetization Scheme, 2015.
Under the Gold Monetization Scheme, 2015, on investor opens an account
with a bank and deposits
his gold in any
physical form. (such
as jewellery coins,
bars, etc). The investor not only earns
interest on the gold-so deposited but also saves the Carrying costs,
as-described above. The deposited gold
is then lent by the banks to jewellers at an interest rate little higher than The interest
paid to the investor. Since
the demand of the jewellers Met domestically, there is a
possibility to reduce the import of gold from outside India.
so deposited earns
interest based on gold weight.
Both principal and
interest to be paid to the depositors of gold will be valued in gold. For example, if an investor deposits 100 gm of gold and gets
interest, then, on - maturity
he has a credit of 101 gram.
Investors will have the choice to take cash or gold on redemption, but the preference has to'be stated at2the time of
For making this scheme
attractive, the following benefits have been
allowed under the Income Tax Act, 1961:
Interest on gold deposited under this scheme
has been exempted from income tax u/s 10(15).
deposit Certificates issued under the Gold Monetization Scheme, 2015 have been excluded
from the definition' of 'capital asset` as given
u/s 2(14). Consequently, transfer of same
would be exempt
from capital gains
Demo Classes of Tax by Prof. Vinit Sir: https://www.conceptonlineclasses.com/demovideos
Visit Website: https://www.conceptonlineclasses.com/