The Sovereign Gold Bond (SGB) Scheme is a government bond that is denominated in gold units. It means that you own the same amount in the form of a bond if you own a certain weight of gold through this scheme. The Sovereign Gold Bond Scheme 2020-21 – Series XII will be available for subscription from March 01, 2021, to March 05, 2021. The central bank also reported that the issue price for the upcoming bond issue has been set at Rs 4,662 per gram.
This helps one to enjoy the rewards of gold rates at the time of maturity as well as the interest received on the bonds. These may be retained in the form of a Demat. In consultation with the Reserve Bank of India, the Government of India has agreed to give those investors applying online a discount of Rs 50/- per gram, less than the nominal value and payment against the application is made by digital means.
- For such investors, the issue price of Gold Bond will be Rs 4,612 per gram of gold. The Gold Bond issue price will be Rs 4,612 per gramme of gold for such investors.
- The previous gold bonds, which were available for subscription from February 1 to February 5, 2021, had an issue price of Rs 4,912 per gramme of gold.
Minimum subscription limit
For one fiscal year, the minimum subscription limit is one gram and the gross subscription limit is 4 kilograms for individuals, 4 kilograms for Hindu Undivided Families (HUF), and 20 kilograms for trusts and similar institutions. Gold Bonds maturity period is 8 years.
Tax Benefits The tax capital tax gains resulting from the redemption of an individual’s SGB have been exempted. Long-term capital gains resulting from the transfer of a bond would be eligible for indexation benefits.
Smrutirekha Bhoi