Under the existing scheme of Gold Deposit Scheme, 1999, interest on gold deposit bonds is exempt from tax. Further, these bonds are excluded from the definition of transfer and hence, shall be exempt from capital gains tax.
It is proposed to extend the benefits envisaged in Gold Deposit Scheme, 1999 to Gold Monetization Scheme, 2015.
Thus, interest on deposit certificates issued under Gold Monetization Scheme, 2015 shall be exempt from tax. Further, these deposit certificates shall be excluded from the definition of transfer and hence, shall be exempt from tax on capital gains.
This amendment will take effect retrospectively from 1st April, 2016 and will, accordingly, apply in relation to the assessment year 2016-17 and subsequent assessment years
