Exemption of interest on deposit certificates issued under the Gold Monetization Scheme, 2015 [Section 10(15 (vi)]

Related amendment in section: 2(14)
Effective from: A.Y.2016-17
(i) Sub-clause (vi) of section 10(15) exempts interest on Gold Deposit Bonds issued under Gold Deposit Scheme, 1999 notified by the Central Government. These bonds are also excluded from the definition of capital asset under section 2(14) and therefore, transfer of such bonds is exempt from capital gains tax.

(ii) The Government of India has now introduced the Gold Monetization Scheme, 2015.

(iii) For the purpose of extending the tax benefits available under the Gold Deposit Scheme, 1999 to this scheme –

(1) Section 10(15)(vi) has been amended to provide that the interest on Deposit Certificates issued under the Scheme, shall be exempt from income-tax.

(2) Section 2(14) has been amended to specifically exclude Deposit Certificates issued under Gold Monetisation Scheme, 2015 notified by the Central Government from the definition of capital asset. Consequently, transfer of the same would be exempt from capital gains tax.