Sovereign Gold Bond Scheme: The issue price of Gold Bond will be ₹5,147/- (Rupees Five thousand one hundred and forty seven only) per gram of gold.
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New Delhi: Sovereign gold bonds (SGBs), which will be issued by the Reserve Bank of India on behalf of the government, will open for public subscription on August 22, Monday. This is the second series of the Sovereign Gold Bond scheme for the financial year 2022-23. The first tranche took place in June. “Don’t miss out on this golden opportunity! SOVEREIGN GOLD BONDS SCHEME 2022-23 SERIES – II opens from 22 Aug to 26 Aug”, tweeted SBI.
Sovereign Gold Bond Scheme Opens Today: 5 Key Things You Need to Know
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- The scheme which is valid for 8 years carries an option of premature redemption after the fifth year. This option can be availed on the date when interest is payable.
- The issue price of Gold Bond will be ₹5,147/- (Rupees Five thousand one hundred and forty seven only) per gram of gold.
- The government in consultation with the Reserve Bank of India, has decided to offer a discount of ₹50/- per gram less than the nominal value to those investors applying online and the payment against the application is made through digital mode.
- Investors can buy the bonds through commercial banks, Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), designated post offices (as may be notified), National Stock Exchange and BSE, either directly or through agents.
- Payment for the SGBs will be done through cash payment (up to a maximum of Rs 20,000) or demand draft or cheque or electronic banking. Online payment will get you Rs 50 discount on per-gram of gold.
- The interest on SGBs shall be taxable as per the provision of Income Tax Act, 1961 (43 of 1961). The capital gains tax arising on redemption of SGB to an individual is exempted. The indexation benefits will be provided to long term capital gains arising to any person on transfer of the SGB.
- The tenor of the SGB will be for a period of eight years with an option of premature redemption after 5th year to be exercised on the date on which interest is payable.
- The investors will be compensated at a fixed rate of 2.50 percent per annum payable semi-annually on the nominal value.
- The SGBs can be used as collateral for loans. The loan-to-value (LTV) ratio is to be set equal to ordinary gold loan mandated by the Reserve Bank from time to time.
- Know-your-customer (KYC) norms will be the same as that for purchase of physical gold. KYC documents such as Voter ID, Aadhaar card/PAN or TAN /Passport will be required. Every application must be accompanied by the ‘PAN Number’ issued by the Income Tax Department to individuals and other entities.
