India to Launch Amnesty Plan for Gold

SEATTLE (Scrap Monster): The Indian government plans to launch an amnesty plan for gold, which will end up in customers having to pay tax for gold held by them beyond a certain limit. The move targets tonnes of gold held by Indian households.

The plan formulated by the Prime Minister’s Office in collaboration with the Ministry of Finance is in its final phase. The plan aims to legalize unaccounted gold with Indian households. According to sources, the plan will set a threshold limit for gold held by customers. Those holding gold beyond the limit will have to disclose them before the government and pay tax on the value of gold. The tax rate on gold holdings is yet to be finalized. Upon closing of the declaration period, hefty fines will be imposed on undeclared gold holdings by individuals, sources said.

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The gold jewellery held by married women below a certain value will be exempted from the tax scheme.

In addition, the government will set up a ‘Gold Board’ comprising of representatives from government and private sector. The body will focus on consumer-centric gold schemes and will undertake efforts in developing gold holdings into a financial asset. Also, the government plans to revamp the Sovereign Gold Bond Scheme, so as to make it more attractive for buyers.

The new scheme is considered as another attempt by the government to unearth billions of black money in the form of unaccounted gold.