The gold deposit scheme provides an avenue for investors to deposit their gold with a jeweller or a bank while allowing them to accrue returns in the form of an increased quantity of the precious metal.
The returns on GDS can be received either as a lump sum at the end of the year or as monthly payments of a predetermined amount, which can be redeemed in either cash or gold.
The primary objectives of gold schemes are to reduce dependence on imported gold, maintain stable foreign exchange, and mobilise gold resources.
Gold schemes aim to encourage people to deposit their unused gold in banks for which they pay interest. They receive returns upon maturity and banks, in turn, can lend this gold to jewellers or utilize it for other purposes. The interest paid can also be made available to jewellers.
The minimum deposit quantity of GDS is 500 grams and there is no upper limit for depositing the gold.
The scheme can be renewed at any time after maturity for a future date.
The scheme offers tax benefits, qualifying for exemption from income tax, wealth tax, and capital gains tax.
Compiled By Syed Muskan