Skip to main content

Banks in talks with temple trusts to push gold scheme

By
Tax clarity on monetisation likely this week
The finance ministry’s revenue department is likely to issue a clarificatory note within this week on the taxation issues of gold monetisation scheme ( GMS) investors. The clarifications will include exemptions on income tax and long- and short- term capital gains tax.
Standard has learnt a number of state- owned banks are in talks with some of the country’s largest and richest temple trusts, including those managing Sabarimala, Sree Padmanabhaswamy, Tirumala Tirupati, Guruvayur, and Puri Jagannath, among others, to part with some of their massive reserves of idle gold for GMS.
These and other issues surrounding the gold schemes were discussed at a meeting, which the finance ministry and the Reserve Bank of India officials held with representatives of various banks in Mumbai on Tuesday. The meeting was chaired by Economic Affairs Secretary Shaktikanta Das.
“The income tax department may issue clarifications on the tax treatment for those investing in the GMS any day now. These will include exemptions on long- and short- term capital gains tax and income tax,” said a senior official.
There are about 20,000 tonnes of gold worth Rs.52 lakh crore lying idle with households and institutions, a bulk of them with temples. The Tirupati temple is believed to be holding some 200 tonnes of gold in its vault. The world’s richest temple, the Sree Padmanabhaswamy in Kerala, is reportedly holding Rs.1 lakh crore worth of gold and valuables in its vaults.
GMS, launched by Prime Minister Narendra Modi on November 5, has received a “slow response”, according to the finance ministry. The gold bond scheme, on the other hand, has received positive response from investors. GMS has been able to garner only 400 gm of physical gold till November 18.
The ministry recently finetuned the scheme to get better response from those holding stocks of gold. It has allowed depositors to give their gold directly to the refiner without involving the collection and purity testing centres, wherever it is acceptable to the banks. “ This will encourage the bulk depositors like HUFs ( Hindu undivided families) and institutions to participate in the scheme,” the government had said.
In its previous meeting in New Delhi, it had already met the representatives of the gems and jewellery sector associations to seek their views on making the monetisation scheme attractive.
Following that, the government allowed around 13,000 Bureau of Indian Standards ( BIS)- licensed jewellers to act as ‘ collection and purity testing centres’, provided they have a tie- up with BIS’ certified refiners.
Business Standard, New Delhi, 3rd Dec.2015

Comments

Post a Comment

Popular posts from this blog

Credit card spending growth declines on RBI gaze, stress build-up

By
  Credit card spends have further slowed down to 16.6 per cent in the current financial year (FY25), following the Reserve Bank of India’s tightening of unsecured lending norms and rising delinquencies, and increased stress in the portfolio.Typically, during the festival season (September–December), credit card spends peak as several credit card-issuing banks offer discounts and cashbacks on e-commerce and other platforms. This is a reversal of trend in the past three financial years stretching to FY21 due to RBI’s restrictions.In the previous financial year (FY24), credit card spends rose by 27.8 per cent, but were low compared to FY23 which surged by 47.5 per cent. In FY22, the spending increased 54.1 per cent, according to data compiled by Macquarie Research.ICICI Bank recorded 4.4 per cent gross credit losses in its FY24 credit card portfolio as against 3.2 per cent year-on-year. SBI Cards’ credit losses in the segment stood at 7.4 per cent in FY24 and 6.2 per cent in FY23, the...
Post a Comment
Read more

Brigade Hotel Ventures files draft papers with Sebi for Rs 900 crore IPO

By
  Brigade Hotel Ventures Ltd, owner and developer of hotels in South India, has filed draft papers with capital markets regulator Sebi to raise Rs 900 crore through an initial public offering (IPO).The proposed IPO is entirely a fresh issue of equity shares with no Offer-for-Sale (OFS) component, according to the draft red herring prospectus (DRHP).Proceeds from the issue to the tune of Rs 481 crore will go towards payment of debt, Rs 412 crore will be allocated to the company and Rs 69 crore to its material subsidiary, SRP Prosperita Hotel Ventures Ltd.Additionally, Rs 107.52 crore will be used to purchase an undivided share of land from the Promoter, BEL, and the remaining funds will support acquisitions, other strategic initiatives, and general corporate purposes.The company may raise up to Rs 180 crore through a Pre-IPO Placement.   If the placement is undertaken, the issue size will be reduced.Brigade Hotel Ventures Ltd is a wholly-owned subsidiary of Brigade Enterprises ...
Post a Comment
Read more

Govt invites applications for RBI deputy governor's post, last date Nov 30

By
  The government has invited applications for the post of deputy governor of Reserve Bank of India from interested candidates with at least 25 years of experience and below 60 years of age as on January 15, 2025.One of the deputy governors, Michael Patra’s current term will end on January 15.According to an advertisement, candidates should have at least 25 years of work experience in Public Administration, including experience at the level of secretary or equivalent in the Government of India, or persons who have at least 25 years of work experience in an Indian or International Public Financial Institutions; or persons of exceptional merit and track record at the national or international level in the relevant field.The last date of submission of the application is November 30, 2024.   It has been clarified that the Financial Sector Regulatory Appointments Search Committee (FSRASC) – a body which will select the candidates- is free to identify and recommend any other person a...
Post a Comment
Read more