INSUBCONTINENT EXCLUSIVE:
Sovereign Gold Bond scheme: Online subscribers get a discount of Rs 50 per gram in the issue priceLooking to buy gold Government-run
Sovereign Gold Bond scheme opened for subscription earlier this month
Sovereign Gold Bond or SGB is a certificate scheme in which the Reserve Bank of India issues bonds on behalf of Government of India
The gold bonds will be issued every month from June till September this year, according to a statement by the Ministry of Finance
The gold bonds are denominated in the multiples of one gram of gold
Bonds under the Sovereign Gold Bond scheme 2019-20 will be issued in four series, through scheduled commercial banks, Stock Holding
Corporation of India (SHCIL), designated post office branches, and bourses exchanges NSE and BSE
Investment in Sovereign Gold Bonds can be used as collateral for loans, according to the statement.1
Who can invest in Sovereign Gold Bond scheme Resident individuals, Hindu Undivided Families, trusts, universities and charitable
institutions can invest in the bond scheme
The investors will be issued a holding certificate and the bonds will be eligible for conversion into demat form.( Physical gold, gold ETF
or gold bond: Where to invest)2
dates, according to the official statement.3
16, 20192019-20 Series IIIAugust 05-09, 2019August 14, 20192019-20 Series IVSeptember 09-13, 2019September 17, 2019(Source: Ministry of
is applicable for individual investors and HUFs
For trusts and other entities, the maximum permissible limit is 20 kilograms
In case of joint holding, the investment limit (4 KG) is applicable to the first applicant only, according to the statement.( Looking to buy
gold Here's all you need to know)5
per cent purity published by industry body IBJA for the last three working days of the week before subscription
For online subscribers, the price will be less by Rs 50 per gram.6
Documents such as voter ID card, Aadhaar card, PAN/ TAN or passport will be required
Applications must be provided with the PAN issued by the Income Tax Department in case of individual as well as other investors.9
Tax treatmentInvestment in the SGB will be subject to income tax laws
However, the capital gains tax on redemption of SGB to an individual has been exempted
The indexation benefits will be provided to long-term capital gains arising to any person on transfer of bond.10
