Who can invest in SGB?
gold bond a trust issued under the scheme, a HUF, a charitable institution, a university, or a person resident in India, being an individual, in his own capacity, or on behalf of a minor child, or jointly can be held together. other person.
How to Buy Sovereign Gold Bond
Sovereign Gold Bonds (SGBs) will be sold through scheduled commercial banks (except small finance banks and payments banks), Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), designated post offices and recognized stock . Exchanges like, National Stock Exchange of India Limited and Bombay Stock Exchange Limited.
sgb issue price
“the face value of the bond based on the simple average closing price” [published by the India Bullion and Jewellers Association Ltd (IBJA)] 5,197/- per gram of gold is calculated for gold of 999 purity for the last three working days of the week preceding the subscription period, i.e. August 17, August 18 and August 19, 2022. The issue price of SGB will be a reduction of Rs 50 per gram for investors subscribing online and paying digitally. The issue price of gold bonds for such investors will be Rs 5,147 per gram of gold,” said the RBI notification issued on August 19, 2022.
Maximum investment in SGB
The maximum amount per financial year (April-March) is 4 kg for individuals, 4 kg for HUF, and 20 kg for trusts and other similar entities, as may be declared by the Government from time to time. We will receive a self-declaration to this effect. The annual limit will include both secondary market purchases and bonds that were purchased during the initial issuance of the government at various stages.
SGB tax treatment
Interest on SGB is taxable under the provisions of Income Tax Act of 1961. (43 of 1961). Capital gains derived from redemption of SGB by an individual are exempt from tax. Long-term capital gains arising from transfer of SGB will be eligible for indexation benefit.
Religion
SGB will be denominated in gram(s) of multiples of gold, with a gram being the base unit.
What is the duration of SBG
The SGB will have a tenor of eight years, with an option to redeem early after the fifth year on the date of interest.