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GOLD BONDS (IMMUNITIES AND EXEMPTIONS) ACT, 1993
25 of 1993
2nd April, 1993
An Act to provide for certain immunities to the subscribers of the Cold Bonds and for certain exemptions from direct taxes in relation to such Bonds and for matters connected therewith or incidental thereto. WHEREAS with a view to mobilising the idle gold resources of residents in India, it is expedient to provide for certain immunities and exemptions to render it possible for such residents to subscribe to Gold Bonds; Be it enacted by Parliament in the Forty-fourth Year of the Republic of India as follows :-
SECTION 01: SHORT TITLE AND COMMENCEMENT
(1) This Act may be called the Gold Bonds (Immunities and Exemptions) Act, 1993.
(2) It shall be deemed to have come into force on the 31st day of January, 1993.
SECTION 02: DEFINITIONS
- In this Act, unless the context otherwise requires,-
(a) "Gold Bonds" means the Gold Bonds, 1998, issued by the Central Government in accordance with the scheme framed by that Government under section 3-;
(b) "subscriber" means an individual, a Hindu undivided family, trustees of a trust, a firm or a company, being a resident or residents in India, who has or have initially subscribed to the Gold Bonds.
Explanation.- For the purposes of this clause, the expression "individual" shall also include,-
(i) his legal heirs; or
(ii) where a partition has taken place among the members of the Hindu undivided family, every member of such family having a share in the Gold Bonds;
(c) all other words and expressions used in this Act but not defined and defined inthe Income-tax Act, 1961shall have the meanings respectively assigned to them in that Act.
SECTION 03: GOLD BONDS SCHEME
(1) The Central Government may, by notification in the Official Gazette, frame a scheme for subscription to the Gold Bonds, 1998, on or after the date of commencement of this Act, but before the specified date. Explanation.- For the purposes of this sub-section, "specified date" means the 31st day of March, 1993 or such other later date as the Central Government may, by notification in the Official Gazette, specify in this behalf.
(2) The scheme framed under sub-section (1) shall be laid, as soon as may be after it is framed, before each House of Parliament.
SECTION 04:. IMMUNITIES
(1) Notwithstanding anything contained in the Wealth-tax Act, 1957the Gift-tax Act, 1958,the Income-tax Act, 1961,the Customs Act, 1962,the Foreign Exchange Regulation Act, 1973andthe Foreign Contribution (Regulation) Act, 1976,-
(a) no subscriber shall be required to disclose, for any purpose whatsoever, the nature and source of acquisition of the gold subscribed for the Gold Bonds, including the source of money with which the gold was acquired;
(b) no inquiry or investigation shall be commenced against any subscriber under any of the said Acts on the ground that such subscriber owns the Gold Bonds; and
(c) the fact that any subscriber owns the Gold Bonds shall not be taken into account for the purposes of, and shall be inadmissible as evidence in any proceedings under any of the said Acts : Provided that nothing contained in this sub-section shall apply where any proceedings in respect of the gold subscribed by the subscriber have already been initiated before the commencement of this Act in accordance with the provisions of any of the aforesaid Acts.
(2) Nothing in sub-section (1) shall apply in relation to prosecution for any offence punishable under Chapter 9orChapter 17 of the Indian Penal Code, the Narcotic Drugs and Psychotropic Substances Act, 1985,the Terrorist and Disruptive Activities (Prevention) Act, 1987,the Prevention of Corruption Act, 1988or for the purposes of enforcement of any civil liability.
SECTION 05: GOLD BONDS NOT TO BE TAKEN INTO ACCOUNT IN CERTAIN CASES
Without prejudice to the generality of the provisions of Section 4-,-
(a) the provisions of the Income-tax Act, 1961shall not apply to-
(i) any interest accruing to the subscriber from the Gold Bonds;
(ii) any long-term capital gains arising to the subscriber;
(b) the provisions of the Gift-tax Act, 1958shall not apply where the gift of the Gold Bonds is made by a subscriber, being an individual, to his spouse, child or parent.
SECTION 06: REPEAL AND SAVINGS
(1) The Gold Bonds (Immunities and Exemptions) Ordinance, 1993 is hereby repealed.
(2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance, shall be deemed to have been done or taken under the corresponding provisions of this Act.
GOLD BONDS SCHEME, 1993
In exercise of the powers conferred by sub-section (1) of section 3 of the Gold Bonds (Immunities and Exemptions) Ordinance, 1993 (No. 22 of 1993), the Central Government hereby makes the following Scheme, namely :-
RULE 1 SHORT TITLE AND COMMENCEMENT
(1) This Scheme may be called the Gold Bonds Scheme, 1993.
(2) It shall come into force on the 15th day of March, 1993.
RULE 2 DEFINITIONS
In this Scheme, unless the context otherwise requires,-
(a) "Form" means a form appended to this Scheme;
(b) "Ordinance" means the Gold Bonds (Immunities and Exemptions) Ordinance, 1993 (No. 22 of 1993);
(c) "receiving office" means the offices or branches of the Reserve Bank of India or of the State Bank of India specified in Annexure I to this Scheme;
(d) all other words and expressions used in this Scheme but not defined and defined in the Ordinance, shall have the meanings respectively assigned to them in the Ordinance.
RULE 3 ELIGIBILITY FOR SUBSCRIBING TO GOLD BONDS
Subscription to Gold Bonds may be made by a resident in India, being :-
(i) an individual, in his capacity as such individual or on behalf of a minor child or jointly with any such other individual;
(ii) a Hindu undivided family; (iii) trustees of a trust; (iv) a firm; or (v) a company.
RULE 4 FORM OF SUBSCRIPTION
(1) Subscription will be only in the form of gold. In case of ornaments, the same should be melted after removing the stones, if any, and then the gold should be tendered: Provided that where the gold tendered is found, after assaying, to contain deleterious elements, such as selenium and tellurium beyond limits acceptable to Government Mint, it will not be accepted for the issue of Gold Bonds and will be returned to the tenderer.
(2) The minimum limit for subscription will be five hundred grammes of gold. There shall be no maximum limit for subscription.
(3) The gold tendered will be assayed by Government Mint and expressed in terms of 0.995 fineness. The Gold Bonds to be issued shall specify the weight of gold of 0.95 fineness as determined after assay of the gold tendered and after deducting refining losses as provided in Annexure IIto this Scheme.
(4) The weight of the gold at 0.995 fineness as determined by the Government Mint and indicated by the Reserve Bank of India in the Gold Bonds shall be binding on the subscriber.
(5) The Gold Bond will be issued for the quantity equal to the nearest lower whole gramme of gold and the value of the fraction over and above the quantity accepted for issue of the Gold Bond will be paid to the subscriber at the time of delivery of the Gold Bond at the rate of rupees 'four hundred per gramme.
(6) The Bonds will be issued for a minimum denomination of five hundred grammes of gold, except in cases where the gold tendered after assaying is of a weight of less than five hundred grammes.
(7) The date of issue of Gold Bonds shall be the date on which the gold is tendered at the receiving office.
RULE 5 PROCEDURE FOR MAKING APPLICATION FOR SUBSCRIPTION TO GOLD BONDS
(1) Every subscriber who is desirous of making subscription to the Gold Bond shall apply to any receiving office in Form 'A' or as near thereto as possible and tender at least five hundred grammes of gold along with the application.
(2) On receipt of an application under sub-paragraph (1), the receiving office shall issue a provisional receipt for the weight of the gold tendered by the subscriber.
(3) After the gold has been assayed by the Government Mint, the Gold Bond will be issued by the Public Debt Office of the Reserve Bank of India indicating weight of the gold of 0.995 fineness as determined by the Government Mint rounded to the nearest lower whole gramme along with the final receipt.
RULE 6 FORM OF ISSUE OF GOLD BONDS
(1) The Gold Bonds will be issued in the form of either Government Promissory Note or Stock Certificate, depending upon the option exercised by the subscriber : Provided that where no option is exercised by the subscriber, the Gold Bond shall be issued in the form of Stock Certificate.
(2) The Gold Bond issued in one form cannot be converted into the other form.
RULE 7 PERIOD OF SUBSCRIPTION
The subscription for the Gold Bonds under this Scheme shall open on and from the 15th day of March, 1993 and will close on the 14th day of June, 1993.
RULE 8 REPAYMENT AND INTEREST
(1) The Gold Bonds will be repaid in the form of gold of 0.995 fineness five years after the date of issue.
(2) The Bonds will bear a lump sum interest for the period of five years payable on maturity in rupees at the rate of rupees forty for each gramme of gold of 0.995 fineness.
(3) The tender of the gold on maturity of the Gold Bonds along with the interest due thereon will be made from the receiving office as specified by the subscriber in the application form.
RULE 9 TRANSFER OF GOLD BONDS
(1) The Gold Bond in the form of Stock Certificate is transferable by execution of an Instrument of transfer annexed to it.
(2) On transfer of the Gold Bond issued in the form of Stock Certificate, the transferee shall get the Instrument of transfer registered in Public Debt Office of the Reserve Bank of India at Bombay.
(3) In the case of transfer the stock certificate should be surrendered at the Public Debt Office, Bombay where it stands registered. Where the stock is transferred in full or in part the purchaser will receive a certificate for the quantity of gold transferred and the transferor a new certificate for the balance, if any,
(4) The Gold Bonds in the form of Promissory Note are transferable by endorsement and delivery.
RULE 10 LOANS AND ADVANCES
The Gold Bonds can be held by any banking company, State Bank of India, a subsidiary bank, a corresponding new bank or a co-operative bank as defined in the Banking Regulation Act, 1949, Regional Rural Banks established under section 3 of the Regional Rural Banks Act, 1976, if the Gold Bonds arc transferred to them under paragraph 9 for the limited purpose of obtaining an advance against the security of such Bonds.
RULE 11 NOMINATION BY THE SUBSCRIBER
(1) The provisions contained in this paragraph shall apply to the Gold Bonds issued in the form of a Stock Certificate.
(2) The sole holder or sole surviving holder of a Gold Bond being an individual, may nominate in Form B or as near thereto as may be, one or more persons who shall be entitled to the Bond and the payment thereof, in the event of the death of the subscriber: Provided that no nomination shall be made under sub-paragraph (2) where the individual has subscribed to the Gold Bond on behalf of a minor.
(3) If the nominee is a minor, the subscriber may appoint any person to receive the gold due under this Scheme in the event of the death of the subscriber during the minority of the nominee.
(4) A nomination made by a subscriber may be cancelled or varied by a fresh nomination in Form B or as near thereto as possible, or may be cancelled by giving notice in writing to the Public Debt Office of the Reserve Bank of India in Form C.
(5) Every nomination and every cancellation or variation thereof shall be registered at the Public Debt Office of the Reserve Bank of India and shall be effective from the date of such registration.
(6) Where the nomination is in favour of more than one person, the nominee first named shall alone have the right to receive the gold on maturity along with interest which is due to the deceased subscriber.
(7) Where the nominee first named has predeceased the subscriber and the subscriber has not cancelled the nomination or substituted the nomination, the nominee second named shall be entitled to receive the gold on maturity along with the interest which is due to the deceased subscriber and so on in respect of other successive nominees: Provided that if any nominee is dead, the surviving nominee or nominees shall in addition to the proof of the death of the subscriber also furnish proof of death of the deceased nominee or nominees, as the case may be.
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