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

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Friday 2 February 2018

Gold can finance Infrastructure




In his Budget speech , Shri Arun Jaitleyji said :


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The government will formulate a comprehensive Gold Policy to develop gold as an asset class



Government will also establish a system of consumer friendly and trade efficient regulated gold exchanges in the country



The Gold Monetization Scheme will be revamped to enable people to open a hassle-free Gold Deposit Account.


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After his announcement of Gold Monetization Scheme in his 2016 budget , I had sent following e-mail to Shri Jaitleyji . I hope the proposed “ revamp “ will incorporate my suggestions





Monday, 28 March 2016


WAY TO A WIFE's HEART ?


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  :



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#  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 jewellers , thereby
    reducing imports


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#  Advantages to gold depositors :


*  Benefit from price increase at the time of maturity

*  Earn interest on the value of deposited gold


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#  Negative Point :

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

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#  Public Reaction :

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


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#  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 "


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#  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



03  Feb  2018




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