The Government of India has announced fresh issue of Sovereign Gold Bonds ( SGBs). The second series for this financial year would be open for
subscription from October 15-19, 2018.
Price
Average of the latest three business day's price as fixed by the India Bullion and Jewellers Association Ltd.
Minimum Investment
One Gram
Maximum Investment
4 kg per anum ( 20 kg for Trusts)
Interest Rate
2.5% per anum
Tenure
8 years.
You can prematurely encase them after 5 years or sell them on a stock exchange.
Where to buy
Banks, Post Offices, Stock Exchanges ( NSE and BSE).
You can also buy them online through the websites of these agencies.
Online Purchases carry a discount of Rs.50 per gram
When will SGBs get issued
for the applications received during a given week, the bond shall be issued on the second business day of next week. For this particular tranche it would be October 23, 2018
Redemption Value
Based on the price of gold of 999 purity on the three business days prior to redemption date.
Taxation
The interest paid on these bonds is fully taxable. Capital Gains on redemption are exempt from tax. Of sold before 8 years the benefit of indexation on long term capital gains ( if held for more than 1 year) is available.
Allotment
Almost assured
How to hold them.
Certificates or in Demat form.
subscription from October 15-19, 2018.
Price
Average of the latest three business day's price as fixed by the India Bullion and Jewellers Association Ltd.
Minimum Investment
One Gram
Maximum Investment
4 kg per anum ( 20 kg for Trusts)
Interest Rate
2.5% per anum
Tenure
8 years.
You can prematurely encase them after 5 years or sell them on a stock exchange.
Where to buy
Banks, Post Offices, Stock Exchanges ( NSE and BSE).
You can also buy them online through the websites of these agencies.
Online Purchases carry a discount of Rs.50 per gram
When will SGBs get issued
for the applications received during a given week, the bond shall be issued on the second business day of next week. For this particular tranche it would be October 23, 2018
Redemption Value
Based on the price of gold of 999 purity on the three business days prior to redemption date.
Taxation
The interest paid on these bonds is fully taxable. Capital Gains on redemption are exempt from tax. Of sold before 8 years the benefit of indexation on long term capital gains ( if held for more than 1 year) is available.
Allotment
Almost assured
How to hold them.
Certificates or in Demat form.
