As per RBI notification Sovereign gold bonds scheme 2023-24 Series II open for subscription from 11th September 2023 to 15th September 2023. Let’s explore Sovereign gold bonds 2023 Series II price , benefits, eligibility and more.
The GOI had launched a gold bond scheme in November 2015 to reduce the demand of physical gold. Due to the high demand of gold, the Indian Government have to import gold from outside countries. Thus to lower the demand The GOI introduced SGBs.
Table of Contents
Sovereign gold bonds scheme 2023-24 Series II Features
#Who can buy Gold Bonds
The sovereign gold bond scheme is restricted for sale to resident individuals ( individually or on behalf of minors, jointly), HUFs,Truss, University and charitable institutions.
NRIs are not allowed to participate in the Sovereign Gold Bonds.
# Sovereign gold bonds scheme Series II purchase dates
The scheme is opening for subscribers from 11th September 2023 to 15th September 2023.
# How to apply
sovereign gold bond scheme 2023 24 series to will be sold through banks, stock holding corporation of India ( SHCL), designated post office and recognise stock exchange that is NSE and the BSE.
# Tenure of Gold Bond
SGB holding tenor is 8 years with an exit option after 5 years. Thus subscribers can have the premature encashment in the 6th, 7th, and 8th years from the stock exchanges.
# Minimum & Maximum Investment
The minimum permissible investment limit in sovereign gold bond scheme is 1 gram of gold.Whereas the maximum limit of subscription is 4 kg for individual, 4 kg for HUF and 20 kg for trusts or similar entities.( limit is for fiscal year 1 April to 31 March).
# Issue Price
The issue price for Sovereign gold bonds scheme Series II is Rs. 5923 per gram. The nominal value of bond is based on the simple average of closing price published by India bullion and jewelers association limited ( IAJB) for gold of 999 purity of the last three working days of the week.
# Interest rate
On the nominal value, you will get a set interest rate of 2.50% per year, payable semi-annually. This interest rate is based on the amount of money you initially invested, not the bond’s value as of the interest payment date.
Direct credit for interest will be made to the account you shared with the investment.
# Format of Issuance
According to the GS Act of 2006, the Gold Bonds will be issued as Government of India Stock. A Holding Certificate would be given to the investors for this. It is possible to convert the Bonds to Demat form.
# From where you can buy Sovereign gold bonds scheme Series II ?
The subscriber can buy the bonds from banks,designated post office, recognise stock exchange i.e. NSE and BSE, Stock Holding Corporation of India Limited (SHCIL), designated Post Offices.
# Premature Withdrawal of Bonds
The subscriber is eligible to sell SGB after 5th year. Thus it can be sold in n the 6th, 7th, and 8th years from the stock exchanges.
the redemption price will be in Indian Rupees based on the previous week’s (Monday-Friday) simple average of the closing price of gold of 999 purity published by IBJA.
# Loan against bond
The subscriber can use SGB as collateral to avail loan.The Loan to Value ratio will be as applicable to ordinary gold loan mandated by the RBI from time to time.
The loan against SGBs will be subject to the decision of the lending institution, and cannot be inferred as a matter of right by the SGB holder.
# Nomination
The subscriber can nominate under SGB. Even one can change the nominee in later years also through form D and Form E
# transferability
The Bonds are transferable by execution of an Instrument of transfer as in Form F in accordance with the provisions of the Government Securities Act, 2006 (38 of 2006) and the Government Securities Regulations, 2007, published in part 6, Section 4 of the Gazette of India dated December 1, 2007.
Sovereign gold bonds scheme 2023-24 Series II Taxation
The taxation of Sovereign gold bonds scheme 2023-24 Series II as follows:
Tax on Interest- Interest income is taxable in nature. The interest will be added to your income and taxed as per your tax slab rate.
Tax slab rate 10% – post tax earning 2.25%
Tax slab rate 20% – post tax earning 2.%
Tax slab rate 30% – post tax earning 1.75%
Maturity Proceed – The maturity proceeds means the gains are not taxed. Even if you exit in 6th, 7th or 8th year, the gains are not taxable in nature.
Selling of SGB in the secondary market of stock exchange- In case of selling in secondary market the gains will be treated as short term capital gain. This gains will be added to income as will be taxed as your income tax slab rate.
The markets are anticipating that the US central bank is near the end of its rate heights cycle this is good news for gold as higher interested 10 to way on gold prices
Central Bank around the world are accumulating gold in use quantities I am it going economic uncertainty and growing post was the dollarisation this is seen as a vote of confidence in gold as a safe heaven asset.
