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 jewelers , 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
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
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www.hemenparekh.in / blogs
29 March 2016
hemen
parekh
Marol
, Mumbai , India
(
M ) +91 - 98,67,55,08,08
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