Sovereign Gold Bond Scheme 2021-22 (Series I).
The Sovereign Gold Bond Scheme 2021-22 – Series I is open for subscription for the period from May 17, 2021 to May 21, 2021. The nominal value of the bond is ₹4,777/- per gram of gold. There is a discount of Rs. 50 per gm applicable if the bonds are purchased online and the payment is made by digital mode.
Sovereign Gold Bonds (SGBs) are issued by RBI on behalf of Government of India. Individuals residing in India, HUFs, trusts, universities and charitable institutions are eligible to invest in SGBs. One unit of Sovereign Gold Bond is equivalent to 1 gram Gold of 999-purity.Tenor of the bond is 8 years. Early redemption is allowed after five years from the date of issue. An individual and a HUF can subscribe to minimum of one gram and maximum of 4 kilograms. worth of Sovereign Gold Bonds in one financial year. An application can be made in a single or a joint name. Sovereign Gold Bonds can also be bought on behalf of the minor by his/her guardian. The bonds are held in the books of the RBI or in demat form. The issue price for the SGB 2020-21 Series III is Rs 4,777 per gram. The price is determined on the basis of a simple average of the closing price of gold published by the India Bullion and Jewellers Association (IBJA) for the last three working days of the week preceding subscription. Profit will depend on the performance of gold in future. Subscribers applying online will get a discount of Rs 50 on every gram of gold when paying through the digital mode. Payment can be made through cash up to Rs. 20,000 only. Bonds are sold through Public and Private Sector Banks, designated Post Offices, Stock Holding Corporation of India Ltd. (SHCIL) and the authorised stock exchanges either directly or through their agents. The Bonds bear interest at the rate of 2.50 per cent per annum on the amount of initial investment. Interest will be credited semi-annually to the bank account of the investor. Interest is taxable but TDS is not applicable. The capital gains tax arising on maturity of SGB to an individual will be exempted The indexation benefits will be available to long terms capital gains arising to any person on transfer of bond. Bonds are eligible to be used as collateral for loans from banks, NBFCs and financial institutions. Every application must be accompanied by the Permanent Account Number (PAN). The bond will be t
