(Day 59) (Final) The Gold Bonds (Immunities and Exemption) Act, 1993

ALL INDIA LEGAL FORUM
AILF aims at providing a Valuable Contribution to Contemporary legal issues and
developments. We aim to bring out a platform to provide resourceful insights on
law-related topics for the ever-growing legal fraternity.
Date - 31.08.2020
Day - Day 59
Legal Legislation
THE GOLD BONDS (IMMUNITIES AND EXEMPTION) ACT, 1993
INTRODUCTION
The Gold Bonds (Immunities and Exemption) Act, 1993 is an Act that was enacted on 2nd
April 1993 by the Ministry of Finance and Department of Economic Affairs. This Act was
enacted in the 44th Year of the Republic of India. It consists of 1 chapter further divided into
6 sections.
PURPOSE OF THE ACT

The Gold Bonds (Immunities and Exemption) Act, 1993 is an Act to provide for certain
immunities to the subscribers of the Gold Bonds and certain exemptions from direct taxes
concerning such Bonds and for matters connected therewith or incidental thereto.
EXPLANATION OF SECTIONS
Section 1 → Short title and commencement
This section states that this Act shall be called ‘The Gold Bonds (Immunities and Exemption)
Act, 1993’.
Section 2 → Definitions
This section defines the terms of gold bonds and subscribers.
(a) The term ‘Gold Bonds’ refers to the Gold Bonds, 1998, issued by the Central
Government following the scheme framed by that Government under Section 3 of
The Gold Bonds (Immunities and Exemption) Act, 1993;
(b) The term ‘Subscriber’ refers to an; individual, a Hindu undivided family, trustees of a
trust, a firm, or a company, being a resident or resident in India, who has or have
initially subscribed to the Gold Bonds.
(c) This subsection refers to all other words and expressions used in this Act but not
defined and defined in the Income-tax Act,1961 shall have the meanings respectively
assigned to them in that Act.
Section 3 → Gold Bonds Scheme
(1) By notification in the Official Gazette, the Central Government may establish a
scheme for the subscription of Gold Bonds, 1998 on or after the date of
commencement of this Act, but before the date specified.
(2) The scheme framed under subsection (1) shall be laid, as soon as may be after it is
framed, before each House of Parliament.
Section 4 → Immunities
(1) Apart from anything contained in the Wealth-tax Act,1957, The Gift- tax Act, 1958,
the Income-Tax Act,1961 (43 of 1961 ) the Customs Act, 1961, the Foreign
Exchange Regulation Act, 1973 and the Foreign Contribution (Regulation) Act, 1976
-
(a) no subscriber shall be required to disclose 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 for any reason what so ever;
(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, and shall be inadmissible as evidence in, any proceedings under
any of the said Acts: Provided that nothing contained in this subsection shall
apply where any proceedings In respect of the gold subscribed by the
subscriber have already been initiated before the commencement of this Act
under the provisions of any of the aforesaid Acts.
(2) Nothing in subsection (1) shall apply concerning prosecution for any offence
punishable under Chapter IX or Chapter XVII of the Indian Penal Code (45 of 1860),
the Narcotic Drugs and Psychotropic Substances Act,1985, the Terrorist and
Disruptive Activities (Prevention) Act, 1987 (28 of 1987), the Prevention of Corruption
Act,1988 (49 of 1988) or for enforcement of any civil liability.
Section 5 → Gold Bonds not to be taken into account in certain cases
Without prejudice to the generality of the provisions of Section 4 of The Gold Bonds
(Immunities and Exemption) Act, 1993 -
(a) the provisions of the Income-tax Act, 1961 shall 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, 1958 shall not apply where the gift of the Gold
Bonds is made by a subscriber, being an individual, to his spouse, child, or parent.
Section 6 → Repeal and savings
(1) The Gold Bonds (Immunities and Exemptions) Ordinance 1993 (Ord. 22 of 1993) is
hereby repealed.
(2) Other than any such repeal, anything is 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.
By Sneha Mahawar, Anshika Raj Singh and Deb Zyoti Das, Content Board, All India
Legal Forum.
Reach us at -
Facebook Page- https://www.facebook.com/All-India-Legal-Forum-106609507709951/
Instagram- https://www.instagram.com/all_india_legal_forum/
LinkedIn- https://www.linkedin.com/mwlite/company/all-india-legal-forum
Telegram- https://t.me/joinchat/AAAAAE-sEoelpVfnGk7NAA
Twitter- https://twitter.com/AILF_2020?s=08
Youtube-
https://www.youtube.com/channel/UCinTJRf6DeMl8-siQ4B9GjA?view_as=subscriber
Website- www.ailf.in

(Day 59) (Final) The Gold Bonds (Immunities and Exemption) Act, 1993

Uploaded by

Copyright:

Available Formats

(Day 59) (Final) The Gold Bonds (Immunities and Exemption) Act, 1993

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

(Day 59) (Final) The Gold Bonds (Immunities and Exemption) Act, 1993

Uploaded by

Copyright:

Available Formats

ALL INDIA LEGAL FORUM

THE GOLD BONDS (IMMUNITIES AND EXEMPTION) ACT, 1993

PURPOSE OF THE ACT

You might also like