Section 5

Gold Bonds not to be taken into account in certain cases.

5. Without prejudice to the generality of the provisions of section 4,—

 (a)   the provisions of the Income-tax Act, 1961 (43 of 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 (18 of 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.