Gold Monetisation Scheme
Gold Monetisation Scheme is a scheme aimed to safeguard the gold held in Indian households and also make productive use of it. It was launched by Government of India in 2015, under this scheme one can deposit their gold in any form in a GMS account to earn interest as the price of the gold metal goes up. The depositors earn interest once the gold is deposited in the metal account.
The minimum deposit that can be made in a gold monetisation scheme is 30 grams of any purity. There is no maximum limit. There are 3 term deposit plans under the Gold Monetisation Scheme. The scheme will give attractive interest rates depending upon the period of deposit.
The main features of Gold Monetisation Scheme are:
The scheme offers easy storage of gold. The owner would get returns in the form of money or gold when the plan matures.
It gives option to encash the gold at maturity which gives the advantage of the appreciating value of gold.
The scheme offers deposit flexibility as gold in any form of ornaments, jewellery coins or gold bars can be deposited under the Gold Monetisation Scheme. The deposits of gold ornaments with gemstones are not allowed.
The depositor does not have to pay capital gains tax on the profits made through the scheme. The capital gains made from the Gold Monetisation Scheme are exempt from wealth tax and income tax.