Next tranche of gold bonds scheme from Nov 5
The government will launch the next tranche of sovereign gold bonds scheme on November 5. "The issue price of the bond during this subscription period i.e. November 5-9, 2018, shall be Rs 3,183 per gram with settlement on November 13, 2018.
The government will launch the next tranche of sovereign gold bonds scheme on November 5. "The issue price of the bond during this subscription period i.e. November 5-9, 2018, shall be Rs 3,183 per gram with settlement on November 13, 2018, as also published by RBI in the Press Release dated October 12, 2018," an official statement from the Finance Ministry said.
It has also been decided to allow discount of Rs 50 per gram from the issue price to those investors who apply online and the payment is made through digital mode.
For such investors, the issue price of gold bonds will be Rs 3,133 per gram of gold.
The sovereign gold bond scheme was launched 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.
Under the scheme, the bonds are denominated in units of one gram of gold and multiples thereof. Minimum investment in the bonds is one gram with a maximum limit of subscription of 500 grams per person per fiscal year.
The maximum limit of subscription is 4 kg for individual and HUF and 20 kg for trusts and similar entities per fiscal (April-March).
The RBI said the payment for the bonds would be through cash, maximum of Rs 20,000, demand draft, cheque or electronic banking.
The bonds are eligible for conversion into demat form and can be used as collateral for loans.
The loan-to-value (LTV) ratio is to be set equal to ordinary gold loan mandated by the Reserve Bank from time to time.
The interest on gold bonds would be taxable.
"The capital gains tax arising 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 the transfer of bond," RBI said.
Know Your Customer (KYC) norms would be the same as that for the purchase of physical gold and every application must have PAN number of the investor.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Retirement Planning: SIP+SWP combination; Rs 15,000 monthly SIP for 25 years and then Rs 1,52,000 monthly income for 30 years
Top Gold ETF vs Top Large Cap Mutual Fund 10-year Return Calculator: Which has given higher return on Rs 11 lakh investment; see calculations
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
EPF vs SIP vs PPF Calculator: Rs 12,000 monthly investment for 30 years; which can create highest retirement corpus
Home loan EMI vs Mutual Fund SIP Calculator: Rs 70 lakh home loan EMI for 20 years or SIP equal to EMI for 10 years; which can be easier route to buy home; know maths
10:16 PM IST