Skip to main content

Gold Monetization Scheme 2015

 

Indian's are amongst the world's biggest consumers of gold. They invest mostly in the physical form. However gold investors keep this precious metal unused. They either keep it safe in a bank locker or at home which ultimately loses its monetary value since it does not generate income unless it is sold at a higher price. Keeping this in mind, Prime Minister Shri Narendra Modi will launch four gold related investment schemes on 05 November, 2015:

  1. Gold Monetization Scheme
  2. Gold Coin Scheme
  3. Sovereign Gold Bond
  4. Gold Bullion Scheme

Let's explore gold monetization scheme in detail which will earn interest on the idle gold:

Benefits to Investor: Gold deposited will earn interest.

Benefits to the Indian economy: Another benefit of this scheme is that India's need of importing the gold will be reduced. This will strengthen India's economy as expense on importing the gold will be reduced because the deposited gold will be re-circulated which will directly cut the import.

What type of gold can be deposited: Individual's can deposit gold bars, coins, and jewelleries. However if the jewelry has embedded stones then it cannot be deposited.

Tenure: Investors are offered following three types of deposits or tenure options as a part of this gold monetization scheme:

  1. Short term tenure: Matures between 1-3 years
  2. Medium term tenure: Matures between 5-7 years
  3. Long term tenure: Matures between 12-15 years

Interest Rate: RBI has allowed banks to fix their own interest rate similar to the savings bank interest rate. The short term deposits will fetch 2.25 per cent interest on current price of gold while the long term investment would fetch 2.5 per cent interest.

Minimum Investment Limit: Gold which weighs 30 grams of 995 fineness is mandatory.

Maximum Investment Limit: There is no maximum limit for depositing under this scheme.

Who will verify the authenticity of the gold? To prevent fraudulent activity, each and every gold product will be tested by collection and purity testing centres. Government of India will provide the list of authorized centers.

Who can deposit under gold monetization scheme? Residents of India, Hindu undivided family, mutual funds and exchange trading funds registered under securities and exchange board of India (SEBI) can deposit under GMS.

Is joint deposit allowed? Yes. And to avoid complexing the deposit process, the rules applicable to the joint account holders in a normal bank account also applies to the GMS scheme. Minimum 2 persons are required for joint deposit and there is no cap on maximum person.

Where can you deposit? Reserve Bank of India has allowed all the scheduled commercial banks to offer the scheme.

Is premature withdrawal possible? Yes, but only after the minimum lock-in period.

Is there any penalty when deposits are withdrawn prematurely? Yes and it would be fixed by the respective bank.

Is the interest taxable? Yes, interest earned on the gold deposit is taxable as per the Income tax act, 1961.

What is the process of deposit?

Interested individual's has to open gold deposit account which would be similar to a normal saving bank account. This would be a zero balance account. Are you aware of Pradhan Mantri Jan Dhan Yojana where you can open zero balance savings account? 

  1. Documents required for account opening: All the documents for verification i.e. know your customer (KYC) would be required i.e. address proof, ID proof and passport size photograph. If more documents are required then the same would be asked by the respective banks.
  2. Once verification is done, depositor will have to approach the government authorized Collection and Purity Testing Centres (CPTC). Banks will provide this list to the depositor.
  3. CPTC will then perform a detailed assessment of the gold and upon successful verification they will issue a receipt which is signed by the authorized signatories of their center.
  4. Depositor will then have to submit the receipt in the bank. They will issue a final deposit certificate to the depositor which will also contain the tenure for which the deposit is made.
  5. How will the principal and interest get credited? It will be credited in the deposit account of the individual.
  6. Grievance Redressal: If individual's are not happy with the bank with regards to any process involved in this scheme then they should first approach the bank's grievance department and then contact banking ombudsman of Reserve Bank of India.

PM's motto is to "Not let your gold become dead money".  PM had earlier launched following successful schemes:

  • Pradhan Mantri Jan Dhan Yojana
  • Pradhan Mantri Suraksha Bima Yojana
  • Pradhan Mantri Jeevan Jyoti Bima Yojana
  • Sukanya Samriddhi Yojana
  • Atal Pension Yojana

And with the launch of these new investment schemes, it is expected to further benefit Indian citizens.

Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds

Top 10 Tax Saving Mutual Funds to invest in India for 2016 or Best 10 ELSS Mutual Funds in india for 2016

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. Franklin India TaxShield

4. ICICI Prudential Long Term Equity Fund

5. IDFC Tax Advantage (ELSS) Fund

6. Birla Sun Life Tax Relief 96

7. DSP BlackRock Tax Saver Fund

8. Reliance Tax Saver (ELSS) Fund

9. Religare Tax Plan

10. Birla Sun Life Tax Plan

Invest in Best Performing 2016 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

Popular posts from this blog

What is Electronic Clearing Service (ECS)?

  As the name suggests, it's an electronic process through which money can be transferred from one bank account to another. According to RBI, this mode is usually used for regular payments and receipts, like distribution of dividend, interest, salary, pension etc. This mode is also used for collection of bills for telephone, electricity, water, various types of taxes, payment of EMIs , investments in mutual funds , payment of insurance premium etc. There are two types of ECS , like most other banking transactions, ECS credit and ECS debit. An ECS credit is used by a bank account holder , usually a large company or an institution for services like payment of dividend, in terest, salary, pension etc. If your mutual fund pays you dividend to your bank account, of all probability it is being paid through ECS credit.ECS debit, on the other hand, is used when a company or an institution is getting money from a large number of people. For example if you are investing in a mutual fund sc...

Equity Savings Fund

Invest Equity Savings Fund Online   The best part about these funds is that they are subject to equity fund taxation and at the same time are structured like MIP like funds . This new category, equity savings funds , offer a little of everything. They allocate money to equities & equity related instruments, and fixed income. They aim to generate returns by diversification. Such funds invest in fixed income and arbitrage to protect the investors from short term volatility and equity for capital gains. The best part of these funds is that they are subject to equity fund taxation and at the same time are structured like MIP funds.   MIP funds however are subject to debt fund taxation. Investors Equity savings funds are suitable for the following: First time investors who seek partial exposure to equity with less volatility and greater stability Investors seeking moderate capital appreciation with relatively lower risk Those wh...

WEALTH TAX

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300 WEALTH TAX   WHAT CONSTITUTES WEALTH? For wealth tax purposes, "wealth" means property , urban land, car, jewellery , yacht, boat, aircraft and cash in hand in excess of Rs 50,000. CAUTION POINT | Do not think you will have an easy escape from wealth tax by transferring your `wealth' without consideration to your spouse or minor child. Such assets will also be considered as your wealth. HOW TO DETERMINE YOUR TAXABLE WEALTH Add the taxable value of the above assets (computed as per the detailed rules for valuation) owned by you as on March 31 (for FY 2014-15, it will be March 31, 2015). In case you sold your car during the year, it will not be taxable wealth. Deduct loans if any obtained by you to acquire any of the taxable assets from the value of gross tax out for at least 300 days in a...

How to Pick Top Performing Mutual Fund Schemes

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   How to Pick Performing Schemes  Funds that continue to stay in the top grade of performance over longer periods are the ones to bet on, advise investment experts   The mutual fund performance charts of the past few months make for an impressive reading. Funds across all categories boast of stellar returns. Sample this: The mid and small cap category has averaged 77 percent return over the past 12 months, with the best fund delivering a staggering 120 percent. The tax-saving funds also average an impressive 51 percent, including a fund which has soared 92 percent. Many of the table-toppers are funds of proven quality and track record. However, there are also schemes that are not that well-known. Some of these have rarely made it to the performance charts in the past, yet, of late, they bo...

Section 80CCD

Top SIP Funds Online   Income tax deduction under section 80CCD Under Income Tax, TaxPayers have the benefit of claiming several deductions. Out of the deduction avenues, Section 80CCD provides t axpayer deductions against investments made in specific sector s. Under Section 80CCD, an assessee is eligible to claim deductions against the contributions made to the National Pension Scheme or Atal Pension Yojana. Contributions made by an employer to National Pension Scheme are also eligible for deductions under the provisions of Section 80 CCD. In this article, we will take a look at the primary features of this section, the terms and conditions for claiming deductions, the eligibility to claim such deductions, and some of the commonly asked questions in this regard. There are two parts of Section 80CCD. Subsection 1 of this section refers to tax deductions for all assesses who are central government or state government employees, or self-employed or employed by any other employers. In...
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