Now Deposit Gold and earn tax free interest
Seeking to mobilize gold held by households and institutions, government on Tuesday came out with a draft scheme under which a person or entity can earn interest by depositing the metal with banks. As per the draft guidelines, minimum gold deposit is proposed at 30 grams and the interest earned on it would be exempt from income tax as well as capital gains tax.
A person or institution holding surplus gold can get it valued from BIS-approved hallmarking centres, open a Gold Savings Account in banks for a minimum period of one year and earn interest in either cash or gold units, the draft said.
The Finance Ministry has sought comments from stakeholders on the draft gold monetisation scheme by June 2. The gold monetisation scheme, which is proposed to be initially introduced only in selected cities, was announced in the Budget this year by Finance Minister Arun Jaitley.
“The new scheme will allow the depositors of gold to earn interest in their metal accounts and the jewellers to obtain loans in their metal account. Banks/other dealers would also be able to monetise this gold,” Jaitley had said.
India is one of the largest consumers of gold in the world and imports as much as 800-1,000 tonnes of the metal each year. The stock of gold in India that is neither traded nor monetised is estimated to be over 20,000 tonnes. The scheme is aimed at mobilising idle gold held by households and institutions, provide a fillip to the gems and jewellery sector and reduce reliance on import of gold over time to meet the domestic demand.