Sovereign Gold Bond: Gold investors are getting a great opportunity to invest in gold from today, that too at a cheaper price than the market. Gold in the market is at a price close to Rs 48,000, while under Sovereign Gold Bond, one can invest only Rs 47,150 per ten grams. The current installment of Sovereign Gold Bond Scheme 2021-22 will be open for subscription from October 25-29, whose price has been fixed at Rs 4765 per gram of gold. The Finance Ministry had given this information on Saturday. On applying online and paying in digital mode, investors will also get a discount of Rs 50 per gram i.e. in digital mode, gold can be invested in it at the rate of Rs 4715 per gram.
One of the benefits of investing in gold bonds is about tax. In these investments, half yearly interest is available at the rate of 2.5 percent per annum, on which tax liability is made. However, there is no tax liability on capital gains from bonds, which makes it an attractive investment. The gold bond will be open for subscription between October 25-29 and its settlement will happen on November 2 i.e. it will be issued to investors next month.
Special things related to Sovereign Gold Bonds
- Gold Bond prices are determined on the basis of the average price of gold of 999 purity in the last three working days of the previous week of the subscription period. The Indian Boolean and Jewelers Association (IBJA) publishes the price of gold of 999 purity.
On online application and payment, investors will get a discount of Rs 50.
- The bonds will be sold through scheduled commercial banks, Stock Holding Corporation of India, Clearing Corporation of India, select post offices, NSE and BSE, except small finance and payments banks.
- Investors will get interest on the nominal value of the investment at the rate of 2.5 per cent per annum every six months.
- You have to invest at least 1 gram of gold through gold bonds. Apart from this, individuals are allowed to invest a maximum of 4 kg and entities like trusts to invest a maximum of 20 kg in gold bonds in a financial year.
- The tenure of these bonds will be 8 years. However, after holding for five years, you can withdraw your capital on the next interest payment date.
- The redemption price will be determined on the basis of the average closing price of gold of 999 purity in the last three working days published by IBGA.
- The interest earned on investment in bonds will be taxed, but the capital gain on redemption is not taxable for the individual.
- These bonds are also traded on the stock exchange.