1. Hi Mr. Singal,

    One thing I didn’t get, when one have to wait till the jewellery is converted into pure gold and then get a certificate, why can’t we simply visit a gold shop and sell the jewellery and get the cash and the put that amount in any investment scheme?
    What is the difference in this two?
    I think biggest challenge, here will be to convince people to take out the gold in physical format. That depend completely on individuals. DO you really think people will consider this scheme in the name of tax saving?

    • Santanu, as far as jewellery is concerned, even i am apprehensive. Its not about time one spend at the testing center but the cost that is attached to the making charges and impurities present in the jewellery. One may not get the value which one had spent.

      But this scheme does make sense to those who buy and hold gold in physical form like coins, Bar etc. Every year people buy gold on dhanteeras, akshay tritya, many times banks sell gold to their customers, so rather than keeping that gold in locker, one can make use of this scheme. In this case they might not need to bear the fire assay and other costs as gold is already certified and in purest form. This way they can earn some interest on gold too and convert back into coin or bar as and when required.

      Gold also has emotional value, especially when bought in the form of Jewellery which is for personal use. So converting jewellery may find some challenges but otherwise i think people should go for this scheme.

      and its not about tax saving at all, it is just that the interest they get will be tax free.

  2. nice Blog and helpful.This scheme is good for country.but no any temple is ready for offering gold to government.

  3. Hello,
    I continuous follower of your website. There is lot of helpful info provided by you.
    Thank you.
    One query i have is,
    If we have 50 gms of gold and deposit in bank what would Bank get with that if i am not willing to melt and lend it for Jewellers. How will Bank earn money? Will they still pay interest?

    • If you are not willing to melt then in any case you cannot take advantage of this scheme. You have to get the jewellery melted then only can deposit the quantity and purity certificate from the Purity testifying centers.
      banks earning will be the difference in the interest it charges from the jewellers and pay to the depositors.

  4. Hello Sir,

    If Mr. A deposited gold, the FMV of which on that date was Rs. 100 (the cost being Rs. 10), will get the Deposit Certificate of Rs, 100. Later, he redeemed that Deposit Certificate for, say, Rs. 500, the CG which is not chargeable to tax is Rs. 400 (500-100). But what about that Rs. 90 (100-10)? Will that Rs. 90 also be exempt?


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