All you need to know about Sovereign Gold Bonds


What is sovereign gold bonds?
This is actually the part of the market-borrowing program, where RESERVE BANK OF INDIA (RBI) issues Sovereign Gold Bonds ( SGB), on behalf of the Indian government. The Sovereign Gold Bonds are denominated in multiples of one gram of gold. 
This year the second tranche of these sovereign gold bonds ( 2020-2021) is at the price of 4,677 per gram.
The government has sold the highest amount of gold bonds till now in this May that is 25 lakh units of gold for Rs.1,168 crore.
The subscription was for 5 days that was started on May 11 AND CLOSED ON May 15, where one unit of the gold bond is equal to one gram of gold and was priced 4,590 per unit. 

Is investing in this bond is beneficial?
Well, if people want to invest in gold than then there could be no better than these gold bonds.

What Is the Interest Rate on Gold Bonds?
It has a fixed rate of 2.5% per annum and is payable semi-annually.
Who can buy these bonds?
Resident individuals, trusts, universities, charitable institutions, and Hindu Undivided Families ( HUFs).

What is the investment limit?
Minimum one gram to maximum four kilograms of gold can be purchased by HUFs and individuals in a financial year, and up to 20 kg can be bought by trust and a similar category to trust in a financial year. 

What is the lock-in period?
The gold bond scheme comes with a tenor of eight years and has an exit option 5 financial years, this exit option is actually based on the interest payment date.
Tax implications:-
The gold bond interest is taxable, the capital tax gains on redemption of sgb to an individual have been exempted. The indexation benefits will be provided to long terms capital gains arising to any person on transfer of bond 
How to invest in gold bonds?
These gold bonds are sold through commercial banks, designated post offices, and stock exchange BSE and NSE and Stock Holding Corporation. this bond is held in RBI books or in Demat form.

HOW OFTEN DOES THIS GOLD BOND SCHEME OPENS?
THIS GOLD BOND OPEN SIX TIMES A YEAR.

Tranche (2020-21 )                         Subscription Date                      Issuance Date

SERIES I                                      APRIL 20-24,2020                     APRIL 28, 2020

SERIES II                                           MAY 11-15, 2020                      MAY19,2020

SERIES III                                       JUNE 8-12, 2020                      JUNE16, 2020

SERIES IV                                         JULY 6-10, 2020                      JULY 14, 2020

SERIES V                                       AUG 3-7, 2020                     AUGUST 11,2020

SERIES VI                                     AUG 31- SEP 4 2020      SEPTEMBER 8, 2020


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