NEW DELHI (PTI): The much awaited gold bond scheme to garner idle gold reserves was notified Feb.18 and the subscription for the bonds, free from income and gift tax, would begin on March 15.
The five year bonds would be open for subscription for three months till June 14 and would carry alumpsum interest of Rs 40 per gram of the Yellow metal of 0.995 fineness.
A minimum subscription to the scheme would be 500 grams and at the end of five years an equivalent of gold would be returned to the subscribers and interest paid lump sum at the time of maturity.
The bonds, which could be subscribed to by Indian residents including minors, Hindu undivided families, trusts, firms and companies, provide certain immunities to the subscribers besides the tax reliefs.
‘The subscribers need not disclose the source of gold holding and acquisition and the bonds would have nomination facility, transferable and could be pledged as security in banks for advances.
The subscribers have an option of getting the bonds in the form of government promissory note or stock certificates, the bonds could be purchased from all branches of reserve bank of India and main branches of state bank of India.
The scheme was first announced by the finance minister.
Manmohan Singh in the last budget. An ordinance was issued on January 31 to provide for certain immunities and tax reliefs to the subscribers.
The details of the scheme were notified through a finance ministry communiqué Thursday.
Article extracted from this publication >> February 26, 1993
