Gold Bonds To Be Available Soon, Here’s All You Need To Know

The fifth tranche of government-run Sovereign Gold Bonds 2020-21 will open for subscription subsequent month. The gold bond scheme will probably be obtainable for funding from August three to August 7, after which from August 31 to September 4. Gold costs within the nation have stayed at file highs for previous few weeks, Under the Sovereign Gold Bond programme, the Reserve Bank of India points bonds favored to the market worth of gold on behalf of presidency. Gold bonds allow buyers to park their funds in non-physical gold and even earn curiosity, topic to funding limits. 

Here’s all it’s essential to know concerning the Sovereign Gold Bond (SGB) programme:

Important Dates

The Sovereign Gold Bonds, which have already opened for subscription for 5 days every 4 instances this monetary yr, will probably be obtainable for 10 extra days on the next dates:

(The first collection of Sovereign Gold Bonds 2020-21 opened for subscription for 5 days in April)

Issue Price

For every tranche, the difficulty worth is calculated primarily based on a easy common of charges of the three classes earlier than the opening of the subscription window supplied by Mumbai-based India Bullion and Jewellers Association (IBJA). The fourth tranche, which was open for subscription from July 6 to July 10, was obtainable at a problem worth of Rs 4,852 per gram.

Discount

A reduction of Rs 50 per gram is obtainable for on-line purchasers, to advertise digital funds.

Interest Rate

Investment in gold bonds fetches curiosity at a price of two.50 per cent each year. The curiosity is payable on a semi-annual foundation.

Tax 

The curiosity earned from funding in gold bonds is taxable. However, particular person buyers are exempt from paying taxes on the capital beneficial properties arising out of redemption. (Also Read: Should You Invest In Sovereign Gold Bonds? | Where To Buy Sovereign Gold Bonds)

Lock-In Period

Funds parked within the Sovereign Gold Bond programme are locked in for eight years. An exit choice is obtainable after the primary 5 years of subscription. 

Who Can Buy

Resident people, Hindu Undivided Families (HUFs), trusts, universities and charitable establishments can put money into the SGB scheme.

How To Buy

Gold bonds might be purchased from the designated branches of banks and publish workplaces, by means of inventory exchanges BSE and NSE, and the Stock Holding Corporation.