Sovereign Gold Bonds open for subscription
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Sovereign
Gold Bonds are issued by the Reserve Bank of India (RBI) on behalf of the
government and are part of the Centre’s market-borrowing programme.
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Sovereign
Gold Bonds open for subscription today. Here’s what you need to know
If you want to know basics about Sovereign Gold Bonds then please visit my previous article on this by (clicking here)
Sovereign
Gold Bonds are issued by the Reserve Bank of India (RBI) on behalf of the
government and are part of the Centre’s market-borrowing programme.
The third tranche of the government-run
Sovereign Gold Bond (SGB) scheme will open for subscription for five days
starting Monday.
Sovereign Gold Bonds are issued by the Reserve Bank of India
(RBI) on behalf of the government and are part of the Centre’s market-borrowing
programme.
The central bank has
fixed the issue price for the third tranche of the SGB 2020-21 scheme at Rs
4,677 per gram. The Sovereign Gold Bonds (SGBs) are denominated in multiples of
one gram of gold.
The government sold 25 lakh units of gold bonds worth Rs 1,168
crore in the May issue, in the highest-ever amount mobilised by the government,
RBI data shows.
The issue opened for
subscription on May 11 and closed on May 15 and was priced at Rs 4,590 per
unit—one unit of a gold bond is equal to one gram of gold.
There have been 39
issues of gold bonds so far. Before the May issue, the highest amount mobilised
stood at Rs 1,082 crore from the October 2016 issue in which the government
sold 35.98 lakh units.
In the April 2020
issue or the first tranche of gold bonds for FY21, investors subscribed to
17.73 lakh units of gold bonds worth Rs 822 crore.
Here’s all you need to know about the
gold bond scheme:
What is the interest rate on
gold bonds?
A fixed-rate of 2.5% per annum is applicable on SGBs and is
payable semi-annually.
Who can buy gold bonds?
Resident individuals, Hindu Undivided Families (HUFs), trusts,
universities and charitable institutions can invest in the SGB scheme.
How can one invest in gold
bonds?
The SGBs are sold through commercial banks, Stock Holding
Corporation, designated post offices and stock exchanges BSE and NSE. The bonds
are held in RBI books or in Demat form.
What’s the lock-In period?
The gold bond scheme comes with a tenor of eight years and has
an exit option after the fifth year. The option can be exercised on interest
payment dates.
What’s the investment limit?
A minimum of one gram and a maximum of four kilograms of gold
can be acquired by eligible individuals and HUFs in a financial year. Trusts
and similar entities can purchase up to 20kg in a financial year.
What are the tax
implications?
The interest on Sovereign Gold Bonds is taxable but the capital
gains arising out of redemption are exempted for individual investors.
Important dates
The gold bond scheme opens six times a year.
Tranche (2020-21)
|
Subscription Date
|
Issuance Date
|
Series I
|
April 20-24, 2020
|
April 28, 2020
|
Series II
|
May
11-15, 2020
|
May 19,
2020
|
Series III
|
June 8-12, 2020
|
June 16, 2020
|
Series IV
|
July 6-10,
2020
|
July
14, 2020
|
Series V
|
August 3-7, 2020
|
August 11,2020
|
Series VI
|
Aug 31-
Sept 4, 2020
|
September
8, 2020
|
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