India Govt. Reiterates Tax Sops on GMS

New Delhi: Interest earned on deposits under the central government’s Gold Monetization Scheme (GMS) will not attract any tax; gain through trading or redemption will also be exempted from capital gains tax, it was officially reiterated on Sunday.

This clarification, didn’t say if the tax deducted at source provision would apply to gains made by the scheme.

The government also reiterated that in the course of any search operation by the income tax authorities, gold jewellery “to the extent of 500g per married lady, 250g per unmarried lady and 100g per male member of a family need not be seized”.

However, this notification quoted by the government doesn’t exempt depositors from disclosing the source for buying of gold.

Since the launch of the scheme on November 5, 2015, a total of 900.1 kg of gold had been mobilized as of this Wednesday.