Now earn tax-free interest by depositing gold with banks
The banks will fix the interest rates to be earned on gold deposits
New Delhi: To bring huge gold deposits of 20,000 tonnes held by Indians into the market and curb gold imports, the finance ministry on Tuesday announced a draft gold monetisation scheme, in which a person can earn tax-free interest by depositing the precious yellow metal with banks.
The banks will fix the interest rates to be earned on gold deposits. A person holding gold will have to take it to purity testing centres, where jewellery will be melted to check its purity. In case a person doesn’t agree with the purity test, he/she will have the option to take back the gold in the form of gold bars after the payment of a fee.
If the customer agrees to deposit the gold, he/she will be given a certificate by the collection centre certifying the amount and purity of gold deposited. The minimum quantity of gold a customer can bring is proposed to be set at 30 grams, so that even small depositors are encouraged. Gold can be in any form — bullion or jewellery.