Sovereign Gold Bond program opens for subscription today: 10 points
The next tranche of 2021-22 Sovereign Gold Bonds (SGBs) is open for subscription today, October 25. Buying gold during the holiday season is considered auspicious in India. So if you want to invest with a real long term horizon of 8 years and want to profit from the appreciation in the price of gold without dealing with real gold. “Gold sovereign bonds are the best way to invest in gold in digital form without having to buy gold in physical form,” says Mr. Prathamesh Mallya, AVP-Research, Non-Agri Commodities and Currencies, Angel One Ltd.
Sovereign Gold Bond Scheme: everything you need to know
1) The subscription period for 2021-22 Series-VII will be 5 days from today.
2) The issue price was set at ??4,765 per gram of gold.
3) The issue price of gold bonds will be ??50 per gram less for those who subscribe online and pay digitally.
4) Bonds will be sold through banks (except small financial banks and payment banks), Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), offices of designated post and recognized stock exchanges (National Stock Exchange of India and Bombay Stock Exchange).
5) The term of the bond will be eight years with an exit option after the fifth year to be exercised at the next interest payment dates.
6) These bonds are traded on secondary markets
7) Investors will be indemnified at a fixed rate of 2.50 percent per annum payable semi-annually on the face value
8) The minimum authorized investment will be 1 gram of gold.
9) The maximum subscription limit will be 4 kg for individuals, 4 kg for HUFs and 20 kg for trusts and similar entities by fiscal (April-March).
10) SGBs held to maturity are not subject to capital gains tax. In the event that SGBs are sold before maturity on the stock exchanges, capital gains will be withdrawn at the rates in force. Interest earned on SGBs is taxable depending on the investor’s tax base.
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