10 Things To Know Before You
Invest In Sovereign Gold Bonds
What is Sovereign Gold Bond?
Gold Bonds are an ideal investment option for individuals who aim to earn
returns linked to the price of gold. These bonds are issued by the Reserve Bank
of India (RBI) on behalf of the government. The scheme has numerous benefits for
an individual out of which one is exemption of the capital
gains tax arising on redemption of Sovereign Gold Bonds.
However, in case of long term capital gains, individuals get the benefit of indexation on
transfer of bond. Besides, Sovereign Gold Bonds can
also be pledged as security while availing loans.
the financial year 2021, the RBI has launched the Sovereign Gold Bond scheme on 20th
April and the same will remain open until 24th April. The issue
price for the gold bonds has been fixed at Rs. 4,639.
applying for the gold bonds here are a few things that you must know.
Top 10 Things To Know Before
You Invest In Sovereign Gold Bonds Scheme 2020-21 Series I:
you apply for gold bonds online by making digital payment, you get a discount of Rs. 50 per gram. In such
case, the issue price after discount becomes Rs. 4,589.
data of recent closing gold price published by Indian Bullion and Jewellers
Association Ltd. for gold of 999 purity determines the issue price of gold bonds.
gram of gold is the minimum permissible investment
in gold bonds.
post offices, banks, Stock Holding Corporation of India (SHCIL) and stock
exchanges (NSE and BSE) are entitled
to sell the gold bonds.
maturity period of the gold bonds is
8 years. However, you have the option to exit the scheme after the fifth year.
annual interest on gold bonds is
2.50%. The interest income gets added to your income and taxed accordingly.
14 days of the issue, the bonds can be traded in the stock exchanges subject to the liquidity.
capital gain arising on the gold tax bonds on maturity is tax-free. This benefit of taxation is not available on other forms
of investment in gold.
timeline for the gold bonds that
would be issued in the first six months of 2020 are as follows;
Series I April 20-24, 2020
Series II May 11-15, 2020
Series III June 08-12, 2020
can redeem the bonds before maturity
by either approaching the concerned bank, SHCIL offices, post office or agent 30 days prior to the coupon payment date.
Gold Bonds is a lucrative investment option. Although, the Coronavirus pandemic
has brought the economies of the world to a standstill but RBI still expects a
good response to scheme even when there is uncertainty due to COVID-19.
any further assistance or information, you may get in touch with Indira
Securities on our contact numbers - 7970007871,
0731-4797170 or 0731-4797171.