Skip to main content

Gold Monetisation Scheme

 Union Budget 2015 proposed the Gold Monetisation Scheme to make use of the idle gold and bring down the country's CAD. Here are the proposals in the draft guidelines
 The government has come up with draft guidelines for the Gold Monetisation Scheme (GMS), which was proposed during the Union Budget 2015. Monetisation of gold will not only put idle gold to use but will also help rein in the ballooning current account deficit (CAD). The GMS will also make gold available to the gems-and-jewellery sector in the form of loans from banks. This will give boost to the sector. The Scheme will be launched first in select cities only. Over time, it will be extended to other cities.
 

How it will work
In order to monetise your gold holdings (bullion or jewellery), you will first need to ascertain the purity of the gold you own. For that, under the Scheme, there would be around 350 purity-testing centres. You will need to take your gold to one of the testing centres. The testing centre will test the purity of gold and issue a certificate of deposit to you. The certificate will state the amount and the purity of the gold deposited.

The testing centre will also melt the gold you provide. This means that you cannot get the same jewellery back which you had deposited. The entire process of purity ascertainment will require your consent at multiple stages, with the results of each stage shared with you. So, if you want to back off anytime, you very well can.

The purity-ascertainment process will also incur a nominal fee. Also, the minimum quantity of gold that you can bring is 30 gm.

Once you get the certificate of deposit from the purity-testing centre, you can take it to your bank. The bank will open a gold savings account for you. In the gold savings account the amount of gold you have deposited will get credited. With that you will have successfully monetised your gold holdings.

What you will earn
As per the draft guidelines, the interest rate to be paid on your gold holdings will be decided by the bank. The interest will be credited to your account after 30-60 days of opening the account. Note here that both the principal and the interest will be valued in gold. For example, if you have deposited 100 gm gold and you are paid one per cent interest, then your gold holdings will be shown 101 gm.

 

How you will be taxed
The GMS will be exempt from all kinds of taxes - capital gains tax, wealth tax and income tax.

 

What's the tenure?
The GMS will work like a fixed deposit. The minimum lock-in period will be one year. The period could be increased in multiples of a year thereafter. You will also be able to withdraw your gold deposits within the lock-in period.

 

How redemption will happen
You will be able to redeem the gold deposited in terms of cash or gold.

 

Hits and misses
The GMS is a well-intentioned scheme aiming to bring down the CAD. In the last couple of years, gold prices have remained depressed. This has disappointed gold investors. Also, idle gold earns no interest. On the contrary, storing it safely requires expenditure to be made. Given these downsides, the GMS will help gold investors earn income from their gold holdings. Institutions like temples will also be able to monetise their holdings.

Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015

1.ICICI Prudential Tax Plan

2.Reliance Tax Saver (ELSS) Fund

3.HDFC TaxSaver

4.DSP BlackRock Tax Saver Fund

5.Religare Tax Plan

6.Franklin India TaxShield

7.Canara Robeco Equity Tax Saver

8.IDFC Tax Advantage (ELSS) Fund

9.Axis Tax Saver Fund

10.BNP Paribas Long Term Equity Fund

You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds

Invest in Tax Saver Mutual Funds Online -

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

---------------------------------------------

Leave your comment with mail ID and we will answer them

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Leave a missed Call on 94 8300 8300

---------------------------------------------

Invest Mutual Funds Online

Invest Any Mutual Fund Online

Download Mutual Fund Application Forms from all AMCs

Download Mutual Any Fund Application Forms

Popular posts from this blog

ICICI Pru Mutual Fund Dividend

ICICI Prudential Mutual Fund has announced dividend under the following schemes: Scheme Dividend ( Rs /unit) ICICI Pru Capital Protection Oriented Ser V Plan B-D 0.03611325 ICICI Pru Capital Protection Oriented Ser V Plan B Direct-D 0.03611325 ICICI Pru Balanced Advantage Direct-DM 0.06 The record date has been fixed as February 08, 2017. ------------------------------ ------ Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds Top 4 Tax Saver Mutual Funds for 2017 - 2018 Best 4 ELSS Mutual Funds to invest in India for 2017 1. DSP BlackRock Tax Saver Fund 2. Invesco India Tax Plan 3. Tata India Tax Savings Fund 4. BNP Paribas Long Term Equity Fund Invest in Best Performing 2017 Tax Saver Mutual Funds Online Invest Best Tax Saver Mutual Funds Online Download Top Tax Saver Mutual Funds  Application Forms For further information contact  SaveTaxGetRich on 94 8300 8300 ------------------------------ ------ Leave y...
Read more

Hidden Bank Fees

  What Banks Hide From Customers Imagine after a peaceful and exciting holiday you receive your bank statement with steep charges. You then rush to your bank and start confronting staff members and to your dismay, you come to know that the high end debit card was charged very heavily. Wouldn't this cause damage to your finances? So remember, the world outside is full of deceptive and double cheating people. Unethical practices are always used by company sales person in order to meet the target. Credit card companies, mutual funds and bank institutions always play dirty tricks to lure customers and the practices are rampant. So here's how you should be careful while dealing with your banks: High End Debit Card Charges While opening an account with a bank you opt for a debit card with minimal charges. But later on when you upgrade your card and opt for high end debit card the annual charge rise by a good amount. Though such a card has slew of features but it all comes at a high ...
Read more

Partial withdrawal from PPF

  Public Provident Fund (PPF) account has a lock in period   If you opened a PPF account to meet your retirement needs,, think twice about withdrawing from this fund before retirement. But provided it's an emergency here are the rules. Public Provident Fund (PPF) account has a lock in period before which you cannot withdraw your money.   The partial withdrawal is allowed after the completion of 6 financial years . This means that you will be allowed a partial withdrawal from 1 April 2017. The maximum partial withdrawal allowed is the least of the following: 50 percent of the account balance at the end of fourth financial year, 31 March 15 50 percent of the account balance of the end of previous financial year, 31 March 17.   There's a loan option available on your PPF account between the fourth and the sixth financial year. You can obtain a loan of up to 25 per cent of the balance in your account. However, this will attract interest of 2 percent more than the prevailing ...
Read more

Updating a minor PAN card upon becoming adults

  Updating a minor's PAN card once they become adults A PAN card issued in the name of a minor does not contain the minor's photograph or signature, and therefore, cannot be used as a valid proof of identity. Once a minor PAN card holder turns 18, the relevant changes must be made in the PAN records. A new card is then issued bearing a photograph and signature. Application The applicant is required to fill up the "Request for new PAN card andor changes or correction in PAN data" form. The form can be filled up online by accessing NSDL's Tax Information Network website and clicking on the online PAN application tab. Information The applicant must mention the existing PAN number in the application and check the `photo mismatch' and `signature mismatch' boxes, and submit the online form. The form must also be printed out, signed by the applicant, and submitted along with two photographs. Documents Identity and address proof in the form of a copy of the app...
Read more

ICICI Prudential Value Fund Series I

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)   Performance of the scheme will be benchmarked to the S&P BSE 500 index ICICI Prudential Value Fund is a closeended equity scheme. The scheme will have tenure of three years (1095 days) from the date of allotment of units. Units of the scheme will be fully redeemed at the end of the maturity period, unless rolled over. NFO PERIOD:   The NFO is open from October 18 to 28. The minimum subscription during the NFO period is Rs 5,000. SCHEME OBJECTIVE:   The scheme aims to provide long-term capital growth by investing in a well-diversified portfolio of equity and equity-related securities. INVESTMENT STRATEGY:     The fund proposes to invest in stocks that are trading at a huge discount in the BSE 500 index and plans to book profit and distribute dividen...
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now