In his Budget speech , Shri Arun Jaitleyji said :
=======================================================
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.
=======================================================
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
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 jewellers , thereby
reducing imports
================================
# 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 ! )
( 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
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
www.hemenparekh.in
/ blogs
No comments:
Post a Comment