Gold Imports have plunged to $79.14mn during the first months of 20-21. Owing a major fall in demand which is at its 26year low according to the World Global Council. Amid the clash in gold imports the Government has approached jewellers and bullion dealers on how to tap India's idle gold.The industry proposes aligning Income tax law with gold deposit schemes, raising gold holding which provides safety and interest earnings.
With Gold deposited in GMS , which provides investors save the storage cost for keeping their precious metal safe, still being able to earn an interest. Further they will be able to withdraw in the form of gold or cash and earn interest upto 2.5 percent per annum also further saving on safe deposit lockers for saving their gold.
Gems and Jewellery Export Promotion has proposed to limk GMS with the income tax Act which states that jewellery upto 500gms per married woman, 250 gms per unmarried woman and 100 gms for every male member can be deposited. These numbers may not match with their existing income tax returns but that would not matter. The council further suggests to increase the amount yo 1kg per married woman, 500 gms per unmarried woman and 200 gms for male members.
The Government is trying to tap into the resources which is usually provided as safety to a married woman and even every girl child as per Indian customs This scheme will benefit the women in a very big way as Stridhan and Gifting gold on the daughters wedding is a very common custom in India and is followed by almost all communities
What about Cryptocurrency ? Will Gold beat that too, If the restrictions were not there ?
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