The next tranche of Sovereign Gold Bonds (SGBs) 2021-22 opens for subscription today, October 25. Buying gold in the festive season is considered auspicious in India. So, if you want to invest a real long term horizon of 8 years and want to benefit from gold price appreciation without dealing in actual gold. “Sovereign Gold Bonds is the best way of investing in gold in digital form without having to purchase the gold in physical form,” says Mr Prathamesh Mallya, AVP- Research, Non-Agri Commodities and Currencies, Angel One Ltd.
Sovereign Gold Bond Scheme: All you need to know
1) The subscription period for 2021-22 Series-VII will be of 5 days starting today.
2) The issue price has been fixed at ₹4,765 per gram of gold.
3) The issue price of the gold bonds will be ₹50 per gram less for those who subscribe online and pay through digital mode.
4) The bonds will be sold through banks (except small finance banks and payment banks), Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), designated post offices, and recognised stock exchanges (National Stock Exchange of India and Bombay Stock Exchange).
5) The tenure of the bond will be for a period of eight years with an exit option after the fifth year to be exercised on the next interest payment dates.
6) These bonds are traded in the secondary markets
7) The investors will be compensated at a fixed rate of 2.50 per cent per annum payable semi-annually on the nominal value
8) The minimum permissible investment will be 1 gram of gold.
9) The maximum limit of subscription shall be 4 kg for individuals, 4 Kg for HUF and 20 kg for trusts and similar entities per fiscal (April-March).
10) SGBs held till maturity attract no capital gains tax. In case the SGBs are sold before the maturity date on the exchanges, the capital gains will be levied at the applicable rates. Interest earned from SGBs is taxable as per the investor’s tax slab.
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