2.50% p.a. paid semi annually ( Fixed Rate ).
No.
The bonds can be held in Demat account by making a specific request for the same at the time of application. Till the process of dematerialization is completed, the bonds will be held in RBI’s books. The facility for conversion to Demat will also be available subsequent to allotment of the bond.
The redemption price will be bases on previous average price of closing gold price for 0.999 purity published by the Indian Bullion and Jewellers Association (IBJA).
Yes.
TDS is not applicable on the bond. However, it is the responsibility of the bond holder to comply with the tax laws.
Assured return of 2.50% per annum, no need to store physical bars , plus the benefit of application in the Gold Price (If any) at the time of redemption post 5 years.
The bonds are tradable on stock exchanges from the date to be notified by RBI. The bonds can also be sold and transferred as per provisions of Government Securities Act. However, the client would have to approach his / her broker for trading related requirements.
Every application must be accompanied by the ‘PAN Number’ issued by the Income Tax Department to the investor(s).
Minimum 1 gram , Maximum 4000 grams per fiscal year for Individual/Hindu Divided Family and 20000 grams for Trusts and Similar Entities notified by the government time to time.
Persons resident in India as defined under Foreign Exchange Management Act, 1999 are eligible to invest in SGB. Eligible investors include individuals, HUFs, trusts, universities and charitable institutions.
Yes. A customer can apply online through the website of the listed scheduled commercial banks. The issue price of the Gold Bonds will be ₹ 50 per gram less than the nominal value to those investors applying online and the payment against the application is made through digital mode.
The tenor of the bound will be for period of 8 years with exit option after 5th ,6th and 7th year.
Only debit to account.
Yes, joint holding is allowed.
Interest on the Bonds will be taxable as per the provisions of the Income-tax Act, 1961(43 of 1961). Capital gain tax arising on redemption of SGBs to an individual has been exempted on maturity.
Yes, lock in of 5 years.
Yes. The application on behalf of the minor has to be made by his/her guardian.