Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do.

There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Monday, 28 March 2016


Hindustan Times ( 29 March 2016 ) reports :

: There was a recent meeting between Economic Affairs Secretary, Shaktikant Das and representatives from the Reserve Bank of India, temple trusts and other bodies to discuss ways to make the Gold Monetization Scheme , more attractive  :

What are the Advantages  of this Scheme to the Economy ?

*  Reduce demand for gold in physical form to reduce our Import Bill

   Imports of some 1000 tons of gold accounts for nearly 25 % of our Import Bill

*  Bringing out approx 20,000 tons of idle ( locked up ) gold lying with households , into
   the banking system ( approx Rs 57,00,00 Crores worth )

*  Banks will be allowed to sell , gold deposited with them , to jewelers , thereby reducing 

Advantages to gold depositors :

*  Benefit from price increase at the time of maturity

*  Earn interest on the value of deposited gold

#  Negative Point :

*  Gold depositors have to make full disclosures on the source of gold !

Public Reaction :

*  In the past ONE year, only 3 tons of gold ( jewellery ) got deposited

Why ?  :

*  One official reportedly said at the meeting :

" I am not even able to convince my wife to part with her jewellery, which she hardly uses

The main stumbling block was the emotional value attached to the jewellery , which had often been passed on by generations "

Is there a way out ?

YES - as follows :

*  Calculate current value of gold being deposited ( say , Rs 50 lakhs )

*  After 10 years , return to depositor , Rs 50 lakh + simple interest at 10 %

   ( to take care of price increase but no guess work ! )

*  Also credit Rs 50 lakhs to depositor's Income Tax account as " Advance Tax " paid

*  From depositor's Annual Tax Return , keep offsetting  this amount over 10 years,
    thereby reducing his tax liability ( Rs 5 lakh per year , in this case )

    Now, if the depositor is in 20 % tax rate slab, this would mean saving of Rs 1 lakh/year  !

*  Most Important : No need to disclose " Source of Gold " being deposited . No
    questions  !

Now , with this modification , the concerned official can convince his wife by telling her :

"  Go ahead and buy every year , new - and latest trend - jewellry equivalent to the tax amount that the Scheme has saved for me

And , buy dresses and purses to match that jewellery when we go on holidays abroad "

With this , I believe , at least 1,000 tons of gold can be garnered in next 12 months


www.hemenparekh.in / blogs

29  March  2016


Make    Yourself    Heard

Dear Visitor :

It is time for YOU to speak up - and demand that YOU are heard

By emailing this suggestion - incorporating your OWN improvements - to the following Policy Makers

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