Where to buy Gold Bonds?
Posted on: 06/Sep/2019 4:14:04 PM
Features of Sovereign Gold Bond
Eligibility:
The bonds will be restricted for sale to resident Indian entities including individuals, HUFs, Trusts, Universities, and Charitable Institutions.
Denomination:
The bonds will be denominated in units of one gram of gold and multiples thereof.
Minimum size:
Minimum permissible investment will be 1 gram of gold.
Maximum limit:
Maximum limit of subscription shall be of 4 kg for individuals, 4 kg for Hindu Undivided Family (HUF) and 20 kg for trusts and similar entities notified by the government from time to time
Interest rate:
The investors will be paid Interest on the amount of initial investment at the rate notified by RBI for a particular tranche at the time of its launch and is payable semi-annually.
Tenor:
The tenor of the bond will be for a period of 8 years with an exit option from 5th year onwards to be exercised on the interest payment dates.
Redemption:
Redemption price shall be fixed in Indian Rupees and the redemption price shall be based on a simple average of the closing price of gold of 999 purity of previous 3 business days from the date of repayment, published by the India Bullion and Jewelers Association Limited.
Benefits of Sovereign Gold Bond
Hassle-free:
Ownership of gold without any physical possession (No risks and no cost of storage)
Tax treatment:
The capital gains tax arising on the redemption of SGB to an individual has been exempted. The indexation benefits will be provided to long term capital gains arising to any person on transfer of bond.
Tradability:
Bonds will be tradable on stock exchanges within a fortnight of the issuance on a date as notified by the RBI.
Transferability:
Bonds shall be transferable by the execution of an Instrument of transfer in accordance with the provisions of the Government Securities Act.
To get the latest Gold/Silver price visit : Gold rate in Chennai
