Sovereign Gold Bond Scheme: The government will release one installment of Sovereign Gold Bonds this month and another installment will be released in February. Sovereign Gold Bond 2023-24 Series-3 will open on 18-22 December this month. The issue date is 28 December 2023. The date for Series 4 is fixed for 12-16 February. Its issue date is 21 February 2024. Series-1 was open between 19-23 June and Series-2 was open between 11-15 September.

Where will Sovereign Gold Bonds be sold?
Sovereign Gold Bonds are issued by Scheduled Commercial Banks (except Small Finance Banks, Payment Banks, and Regional Rural Banks), Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), Designated Post Offices and recognized Will be sold through stock exchanges like National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange Limited (BSE).

How much gold can you buy?
Sovereign Gold Bond Scheme 2023-24 will be issued by the Reserve Bank of India on behalf of the Government of India. SGBs will be sold only to resident individuals, Hindu undivided families, trusts, universities, and charitable institutions. Under this scheme, a minimum investment can be made in 1 gram of gold while the maximum limit is up to 4 kg.

The maturity period will be 8 years
The sale of Gold Bonds was first started in November 2015 to reduce the demand for traditional gold and as a part of household savings. The maturity period of Sovereign Gold Bonds will be 8 years but there will be an option to exit after completion of 5 years.

How is the issue price decided?
The price of SGB (Sovereign Gold Bonds) is as per Indian Bullion and Jewelers Association Ltd. for the last three working days of the week before the subscription period. It will be settled in Indian Rupees on the basis of a simple average of gold of 999 purity published by IBJA Ltd.

Rs 50 per gram discount on online payment
For those applying online and making the payment digitally, the issue price of Gold Bonds will be reduced by Rs 50 per gram. Payment for SGB will be through cash payment (maximum Rs 20,000) demand draft check or electronic banking. SGBs will be issued as Government of India Stock under the GS Act, 2006. Holding certificates will be issued to investors for this. These bonds will be transferred in demat form.

Rate of interest
Investors will be paid half yearly at a fixed rate of 2.50% per annum on the nominal value of the investment. SGBs can be used as collateral for loans. The loan-to-value (LTV) ratio will be kept at par with ordinary gold loans as mandated by the Reserve Bank of India (RBI) from time to time.

KYC Documentation
Know Your Customer (KYC) norms will be the same as for the purchase of physical gold. KYC documents like Voter ID, Aadhar Card/PAN, or TAN/Passport will be required. Every application should be accompanied by the PAN number issued by the Income Tax Department and other units. SGBs will be eligible for trading.

Tax
As per the provisions of the Income Tax Act, 1961 (43 of 1961), interest on SGBs will be taxable. An individual is exempted from capital gains tax on redemption of SGBs. Indexation benefits will be given for long-term capital gains received by an individual on the transfer of bonds.

Commission
Commission for distribution of SGBs will be paid by the Receiving Office at the rate of 1% of the total subscription amount and the Receiving Office will share 50% of the commission received with the Agents or Sub Agents for the business transacted by them.
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