Investing in gold is now convenient and safe. Government of India's Sovereign Gold Bonds Scheme gives you the benefit of investing in gold without having to store it physically, eliminating the risk and cost of storage. They are linked to the gold price and carry sovereign guarantee both on the capital invested and on the interest.
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Available both in Demat and paper form.
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2.5% interest p.a. in addition to returns linked to Gold prices.
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Carry sovereign guarantee both on the capital invested and the interest.
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Can be used as collateral for loans.
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Easy exit as tradable on exchanges.
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Individual subscribers are eligible for tax exemption on maturity.
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Indexation benefits for long term capital gains arising to any person on transfer of bond.
Eligibility
The Bonds will be restricted for sale to Resident Indian entities including Individuals, HUFs, Trusts, Universities, and Charitable Institutions.
Tenor
The tenor of the Bond will be for a period of 8 years with exit option from 5th year to be exercised on the interest payment dates.
Minimum & Maximum Size
Minimum permissible investment will be 1 gram of gold & maximum amount subscribed by an entity will not be more than 4 kg for individuals, 4 kg for HUF and 20 kg for trusts and similar entities per fiscal year.
Redemption Price
The redemption price will be in Indian Rupees based on previous week’s (Monday-Friday) simple average of closing price of gold of 999 purity published by IBJA.
Tax Treatment
The interest on Gold Bonds shall be taxable as per the provision of Income Tax Act, 1961 (43 of 1961) and the capital gains tax shall also remain same as in the case of physical gold.
