Page 30 - Bullion World Volume 02 Issue 12 December 2022

Bullion World | Volume 2 | Issue 12 | December 2022

DBS Bank plans to
DOMESTIC triple the gold loan

business in five years
news Having achieved a significant retail footprint post amalgamation of the

erstwhile Lakshmi Vilas Bank (LVB) into its fold, DBS Bank India, the wholly
owned subsidiary of Singapore-based DBS, has chalked out aggressive
plans in the gold loan segment, aiming to grow the portfolio by over three
times in the next five years to Rs 13,500 crore. At present, the bank has
a gold loan book of Rs 4500 crores. Apart from this, DBS Bank India is
planning to roll out its digital offerings and products, such as loans for SMEs,
MSMEs, unsecured personal loans for individuals and small business loans
against property for the working capital requirement of small business
establishments, to increase the share of retail banking.
Source: https://www.financialexpress.com
NSE likely to introduce
Tax on the sale of Electronic Gold Receipt soon

physical gold & After the Bombay Stock Exchange (BSE)

digital gold launched Electronic Gold Receipt trading,

As per the Income Tax Act, the sale of the National Stock Exchange is expected to
introduce EGR trading on its platform too.
physical gold attracts capital gains tax. Capital markets regulator Sebi is working
Capital gains are taxable based on the out some taxation issues related to the
type of gain, whether a long-term capital product with the Central Government.
gain or short-term capital gain. If you are Under this product, what is proposed is that
holding gold for more than 36 months the physical gold is to be deposited in a vault, that vault manager will issue
before the date of sale, it is a long-term an electronic receipt and this will be credited to the demat account of
capital gain. Otherwise, it is a short- the investor; that receipt can be traded on the stock exchange," the Sebi
term capital gain, and tax will be payable Executive Director said.
accordingly. One can take indexation Source: https://www.livemint.com
benefit on the cost of acquisition of
physical gold to derive the value of long- One Gold Rate
term capital gain. Such gain is chargeable
to tax at 20 per cent plus a cess of 4 per All Over the
cent on the income tax amount. Hence, Country to Ensure
the total tax will be 20.08 per cent. Transparency
However, if you have sold the gold within
a short period, i.e. before the expiry of Each state has their own pricing
36 months from the date of purchase, mechanisms to arrive at the final gold
include such short-term capital gains in rate by considering international gold rate coupled with customs duty
your gross total income and compute tax and taxes applicable to it. This makes the gold rate different in each
on total taxable income according to the state. Three leading gold jewellery chains- Malabar Gold and Diamonds,
regular tax bracket. Kalyan Jewellers and Joyalukkas have decided to use the bank quoted
Source: https://www.livemint.com gold rates as the standard rate, which in turn will be applicable to all
their stores spread across the country. The standardization of gold rate
promotes transparency and makes it more convenient for customers.
Also, bank rates are cheaper than market rates by up to INR 150. Earlier,
the World Gold Council (WGC) had proposed setting up of a Spot Gold
Exchange to bring in more transparency in gold pricing.
Source: https://www.scrapmonster.com

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