Sovereign Gold Bond
Issued by Government of India
-
Earn Gold's Market Returns + 2.5% every year assured interest
-
Fully exempt capital gains tax arising on redemption
Physical Gold vs. Sovereign Gold Bond
Key Features
Subscription Period & Issue Price
May 17-21, 2021
Rs. 4727/ gram
Expenses
No making charges/ management fees.
Eligibility
Persons resident in India. Individuals, HUFs, trusts, universities and charitable institutions
Interest
A fixed Interest rate of 2.5% every year (receivable semi-annually) will be received on the amount of initial investment.
Redemption Value
The simple average of gold of 999 purity of previous 3 business days from date of repayment published by the India Bullion and Jewelers Association Limited
Safety
Bonds are issued by RBI on behalf of the Government of India. Nivesh Mitr is an authorized distributor.
Holding period
8 years. Though premature redemption is permitted after 5 years.
Minimum & Maximum Limit for Investment
Minimum - 1 gram of gold and multiples thereafter. Maximum -
-
4kg of gold for individuals
-
4kg of gold for HUF
-
20kg for trusts & similar entities
Taxation
-
Capital gain arising on redemption of bonds is completely tax-free.
-
Interest received is taxable as per personal tax slab rates.