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
Subscription Period & Issue Price
March 02 to March 06, 2020
Rs. 4,210/- per gram.
No making charges/ management fees.
Persons resident in India. Individuals, HUFs, trusts, universities and charitable institutions
A fixed Interest rate of 2.5% every year (receivable semi-annually) will be received on the amount of initial investment.
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
Bonds are issued by RBI on behalf of the Government of India. Nivesh Mitr is an authorized distributor.
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
Capital gain arising on redemption of bonds is completely tax-free.
Interest received is taxable as per personal tax slab rates.