Introduction
Sovereign Gold Bonds (SGBs) allow individuals and entities to invest in gold without physically owning it. Issued by the Reserve Bank of India (RBI) on behalf of the Government, SGBs offer returns linked to the price of gold and provide additional interest income.
Gold Bonds Eligibility
You can apply to this Bonds if you meet the following SGB eligibility criteria:
A Resident Individual
A Resident Individual on behalf of a Minor
A Hindu Undivided Family
- A Trust, University, or Charitable Institution
A PAN number issued by the Income Tax Department is required.
FAQs
The SGB Scheme offers tax advantages. While the interest is taxable, the capital gains on holding SGBs for the full 8-year term are completely tax-free, making the overall returns tax-efficient compared to other gold investment options like gold ETFs where gains are taxed.
Sovereign Gold Bond schemes are available to all residents of India. However, if the issue is oversubscribed, allotment may be partial based on the amount applied for.
Sovereign Gold Bonds (SGBs) are government securities denominated in grams of gold. They offer a superior alternative to holding physical gold. The minimum investment is one gram, with a maximum limit of 4 kg for individuals and 20 kg for trusts per fiscal year. SGBs have an 8-year term with an exit option from the 5th year.