Table of Contents
What is the purpose of government sovereign gold bond scheme?
The government launched the sovereign gold bond scheme in November 2015 with an objective to reduce the demand for physical gold and shift a part of the domestic savings, used for the purchase of gold, into financial savings. The government offers SGBs in tranches for limited periods.
What is the price of gold bond today?
Mumbai: The issue price for the next tranche of Sovereign Gold Bond Scheme 2021-22, which will open for subscription for five days from Monday, has been fixed at Rs 5,109 per gram of gold, the Reserve Bank of India (RBI) said on Friday.
What is the maturity period for SGB?
eight years
The maturity period of the sovereign gold bond is eight years. However, you can choose to exit the bond from the fifth year (only on interest payout dates).
How do I redeem SGB after 8 years?
Is premature redemption allowed? Though the tenor of the bond is 8 years, early encashment/redemption of the bond is allowed after fifth year from the date of issue on coupon payment dates. The bond will be tradable on Exchanges, if held in demat form. It can also be transferred to any other eligible investor.
Which is better investment gold or gold bond?
Gold ETFs do not offer any passive income in the form of interest. On the other hand, sovereign gold bonds have a lock-in period of 5 years, after which they can be sold on the stock exchange. They offer interest to the investors and hence are a source of additional income.
Is gold bond tax free?
Tax Treatment The interest on Sovereign Gold Bonds is taxable as per the provisions of the IT Act, 1961. In the case of SGB redemption, the capital gains tax applicable to an individual is exempted.
Is Sovereign gold bond better than FD?
Fixed deposits give you comparatively less return than gold bonds, The good thing about fixed deposits is your money will be safe from market fluctuations. Sovereign Gold Bonds offer higher returns but can be affected by market volatility as well.