Central Government has released draft guidelines on gold monetisation scheme to mobilise the gold held by households and institutions.
Under the terms of the proposed scheme, the deposited precious metals will be melted and the gold in the jewellery would be credited in the name of the depositor.
Minimum amount that a person can deposit under gold monetisation scheme is proposed at 30 gram. The interest rate on the gold will be decided by banks. The gold deposited under this scheme will be exempted from capital gain tax and income tax.
The depositor would earn interest on the value of gold on the day of deposit. The investor would be paid cash equal to the value of the gold on that day if he seeks to withdraw from the scheme or it matures.
The scheme will essentially allow a depositor to earn an income from his gold holdings while his basic investment is protected. It is expected to help organisations such as temple trusts and even companies to unlock their gold holdings while the economy will benefit from lower imports if stored gold comes into circulation.
(With Agency Inputs)