Sovereign Gold Bond Scheme, Gold Monetisation Scheme: No tax on redemption in Budget 2016
With an aim to make investment in Sovereign Gold Bond scheme more attractive, the government today proposed that redemptions of these bonds by an individual will not attract any capital gains tax. Deposit certificates issued under Gold Monetisation Scheme, 2015 will also be exempt from capital gains tax.
With an aim to make investment in Sovereign Gold Bond scheme more attractive, the government on Sunday proposed that redemptions of these bonds by an individual will not attract any capital gains tax. Deposit certificates issued under Gold Monetisation Scheme, 2015 will also be exempt from capital gains tax. (Reuters)
Sovereign Gold Bond Scheme: While the exemption under Sovereign Gold Bond scheme will come into force post April 2017, the waiver for Gold Monetisation Scheme will be effective from April 1 this year. (Reuters)
Sovereign Gold Bond Scheme: "It is proposed to provide that redemption by an individual of Sovereign Gold Bond issued by Reserve Bank of India under Sovereign Gold Bond Scheme, 2015 shall not be charged capital gains tax," Finance Minister Arun Jaitley said in his Budget 2016-17 proposals presented in Parliament. (Reuters)
The Fed will meet March 15-16, when traders expect to gain insight into the U.S. central bank's next move in monetary policy. (Reuters)
Sovereign Gold Bond Scheme: The benefit would be at par with exemptions on interest on Gold Deposit Bonds under Gold Deposit Scheme of 1999. "With a view to extend the same tax benefits to the scheme as were available to the Gold Deposit Scheme 1999, it is proposed…to exclude Deposit Certificates issued under Gold Monetisation Scheme, 2015 from the definition of capital asset and thereby to exempt it from capital gains tax," the Budget document said. (Reuters)
Jewellers strike: Several associations in different parts of the country have been on strike, demanding complete roll-back of the proposed excise duty, said Surinder Kumar Jain, Vice-President All India Sarafa Association. "The government can increase import duty on gold by 1 per cent, instead of imposing excise duty," Jain said.
Sovereign Gold Bond Scheme: So far, RBI has issued gold bonds twice. Under the Gold Monetisation Scheme, launched in November 2015, banks are authorised to collect gold for up to 15 years to auction them off or lend to jewellers from time to time. (Reuters)
India imports about 1,000 tonnes of gold every year. The yellow metal accounts for the second-largest component of the country's import bill after crude oil. The schemes are aimed at reducing the demand for gold in physical form and also to reduce the import bill to curb capital outflows. (Reuters)