Gold Silver Reports – Govt to Formulate Comprehensive Gold Policy, Says Arun Jaitley — The government will formulate a comprehensive Gold Policy to develop gold as an asset class, finance minister Arun Jaitley said in his budget speech.
Gold Policy
Jaitley said that the government will also establish a system of consumer friendly and trade efficient regulated gold exchanges in the country.
India is the second largest consumer of gold at 666 tonnes in 2016 (World Gold Council data).
Additionally, it was announced in the Budget that the Gold Monetization Scheme will be revamped to enable people to open a hassle-free Gold Deposit Account.
In the annual budget for 2015-16, the government first announced the Sovereign Gold Bond and the Gold Monetisation Scheme. The former, an alternative for buying physical gold, has been accepted well by investors with increased number of applicants subscribing to successive issues.
The gold monetization scheme however, hasn’t taken off significantly. For this, you would have to open a gold savings account and deposit any gold you have in lieu of interest to be paid against the value of gold deposited.
Read More: Comex Gold Price Forecast Report By Neal Bhai Indian Goldman
In Budget 2016 to incentivise the gold monetisation scheme, it was proposed that the deposit certificates issued under the scheme be excluded from the definition of capital asset and, hence, be exempt from capital gains tax. Interest received from this scheme was also made exempt from tax. – Goldman Neal Bhai Reports
