Don’t Miss Out on Striking Gold: Invest in Sovereign Gold Bond Scheme Series IV Now!” Get a discount of ₹50 per gram and earn 2.5% interest per annum. Learn more about the scheme’s subscription period, issue price, and other key details in this article. Click now to read!
Sovereign Gold Bond Scheme for 2022-23:- The fourth series of the Sovereign Gold Bond Scheme for 2022-23 opened for subscription on March 6th and will remain open until March 10th, 2023. The issue price for this series is ₹5,611 per gram of gold.
According to a statement from the RBI, investors who apply online and pay through digital means will receive a discount of ₹50 per gram less than the nominal value of the bond. The nominal value is based on the simple average of the closing price for gold of 999 purity of the last three working days of the preceding week.
| Scheme | Sovereign Gold Bond Scheme |
| Series | IV |
| Subscription Period | March 6th to March 10th, 2023 |
| Issue Price | ₹5,611 per gram |
| Online Discount | ₹50 per gram less than the nominal value |
| Eligible Investors | Individuals, HUFs, trusts, universities, and charitable institutions |
| Denominations | One gram of gold and in multiples thereof |
| Minimum Investment | one gram |
| Maximum Limit of Subscription | 4 kg for individuals and HUFs, 20 kg for trusts and similar entities notified by the government from time to time per fiscal year (April – March) |
| Interest Rate | 2.5% per annum |
| Interest Payment | Semi-annually credited to the investor’s bank account |
| Tenor | Eight years with an option of premature redemption after five years |
| Taxation | Interest is taxable under the Income-tax Act, 1961. Capital gains tax arising from redemption is exempt for individuals. Indexation benefits provided for long-term capital gains on transfer of bond. |
The SGB scheme was introduced by the government in November 2015 as part of the gold monetisation scheme. These are government securities that are denominated in grams of gold and are a viable alternative to investing in physical gold.
The bonds are issued by the RBI on behalf of the government and eliminate many risks associated with physical gold. The issue price of the bonds must be paid in cash, and they will be redeemed in cash on maturity.
Who are eligible?
Eligible investors include individuals, HUFs, trusts, universities, and charitable institutions. The bonds are issued in denominations of one gram of gold and multiples thereof.
The minimum investment is one gram, with a maximum limit of four kg for individuals and HUFs and 20 kg for trusts and similar entities notified by the government each fiscal year. Joint holding has the same limit as the first applicant.
The bonds have a tenor of eight years and an option of premature redemption after five years, which can be exercised on the date on which interest is payable. The bonds carry an interest rate of 2.5% per annum, which is credited semi-annually to the investor’s bank account. The last interest payment will be made at maturity, along with the principal.
Interest on the bonds is taxable under the Income-tax Act, 1961, but capital gains tax arising from the redemption of SGB to an individual is exempt. Long-term capital gains arising from the transfer of the bond receive indexation benefits.
key highlights
- The fourth series of the Sovereign Gold Bond Scheme for 2022-23 opened for subscription on March 6th and will remain open until March 10th, 2023.
- The issue price for this series is ₹5,611 per gram of gold, and investors who apply online and pay through digital means will receive a discount of ₹50 per gram less than the nominal value of the bond.
- The SGB scheme was introduced by the government in November 2015 as part of the gold monetisation scheme, and eligible investors include individuals, HUFs, trusts, universities, and charitable institutions.
- The bonds are issued by the RBI on behalf of the government and eliminate many risks associated with physical gold. The issue price of the bonds must be paid in cash, and they will be redeemed in cash on maturity.
- The bonds have a tenor of eight years and an option of premature redemption after five years, which can be exercised on the date on which interest is payable.
- The bonds carry an interest rate of 2.5% per annum, which is credited semi-annually to the investor’s bank account.
- Interest on the bonds is taxable under the Income-tax Act, 1961, but capital gains tax arising from the redemption of SGB to an individual is exempt. Long-term capital gains arising from the transfer of the bond receive indexation benefits.
information source from fortuneindia.com
