Sovereign Gold Bond Scheme 2024: Series opens for subscription today - Check price per gram, how to apply online and other details

Sovereign Gold Bond Scheme 2024, Sovereign Gold Bond Scheme Price: The next tranche of Sovereign Gold Bond (SGB) 2023-24 i.e. Series IV opens for subscription today i.e. February 12. For the uninitiated, these gold bonds are issued by the Reserve Bank of India (RBI). The government has also announced that those applying for Sovereign Gold Bond online will get some discount. 

Sovereign Gold Bond Scheme 2024 Subscription dates

As mentioned above, the subscription for the next tranche of Sovereign Gold Bond opens today and will remain open for subscription until February 16, 2024. 

Sovereign Gold Bond Scheme 2024 Issue Price

The issue price of the sovereign gold bond issued by the RBI has been at Rs 6,263 per gram. 

Sovereign Gold Bond Scheme 2024 Online Discount

However, those applying online or making payment through digital mode will get a discount of Rs 50 per gram. This will bring down the issue price for such investors price of Gold Bond will be Rs 6,213 per gram of gold.

Sovereign Gold Bond Scheme Interest and Taxation

The Sovereign Gold Bond Scheme has a tenor of eight years. However, there is an option for premature redemption after the fifth year. 

The interest is paid at a fixed rate of 2.50 per cent per annum and is fully taxable. However, the profits earned on redemption are fully tax-free.

Sovereign Gold Bond Calculator

Here's how the interest is calculated on Sovereign Gold Bonds or SGB.

If the price of one unit of SGB is Rs 6,000 and the rate of interest is 2.5 per cent, the interest on this will be Rs 150. The important thing to note is that this amount will be paid semi-annually. Over a period of eight years, an investor will earn an interest of Rs 1,200.

Rs 150 per year x 8 years = Rs 1,200. 

Upon maturity, buyers will receive the value of gold at current market prices, and the interest income, all of which is tax-free.

Sovereign Gold Bond Investment Limit

Individual investors can start with a minimum investment of 1 gm and go up to a maximum of 4 kg. The know-your-customer (KYC) norms for SGBs are the same as those for purchasing physical gold. 

Sovereign Gold Bond Investment Document Required

KYC documents such as Voter ID, Aadhaar card/PAN or TAN /Passport will be required. Permanent Account Number (PAN) issued by the income tax department is mandatory.