The Gold Monetization Scheme (GMS) is an initiative by the Government of India aimed at mobilizing the idle gold lying in households and institutions across the country. Instead of keeping gold unused, this scheme allows you to earn interest by depositing it with the government, which then puts the gold to productive use.
How Does the Gold Monetization Scheme Work?
Under the Gold Monetization Scheme, individuals and institutions can deposit their physical gold—whether in the form of jewelry, bars, or coins—with authorized banks. The deposited gold is then refined and converted into gold bars, which the government uses for various economic purposes.
Attractive Interest Rates
One of the main benefits of the GMS is the interest rate it offers. Depositors can earn an interest rate of 2.5% per annum on the gold they deposit. This interest is paid in the form of gold or cash, depending on the tenure of the deposit.
Tax Benefits of the Gold Monetization Scheme
A key advantage of the GMS is the tax exemption it provides. Both the interest earned on the deposited gold and the capital gains from the appreciation of gold’s value are exempt from tax. This makes the scheme an attractive option for those looking to earn a return on their gold holdings without worrying about tax liabilities.
Why Consider the Gold Monetization Scheme?
- Productive Use of Idle Gold: Instead of letting your gold sit idle, the GMS allows you to earn a steady return while contributing to the economy.
- Productive Use of Idle Gold: Instead of letting your gold sit idle, the GMS allows you to earn a steady return while contributing to the economy.
- Tax-Free Earnings: Enjoy tax-free interest income and capital gains.
- Secure and Hassle-Free: The deposited gold is stored securely by the government, eliminating concerns about theft or loss.
The Gold Monetization Scheme offers a smart way to put your idle gold to work. With attractive interest rates and tax benefits, it’s a win-win for those looking to earn from their gold holdings while contributing to the country’s economic growth.
