The second series of Sovereign Gold Bond Scheme (SGBs) 2023-24 is opening from Monday i.e. 11th September. You can invest in this till 15th September, 2023. This time the price of gold has been fixed at Rs 5,923 per 1 gram. Investment can be made in this both online and offline.
You get a discount of Rs 50 on applying online, which means it will cost you Rs 5,873 per gram.
What is Sovereign Gold Bond?
Sovereign Gold Bond is a government bond. If the bond is of five grams of gold, the price of the bond will be the same as the price of five grams of gold. It is issued by RBI.
Investment in 24 carat i.e. 99.9% pure gold
In Sovereign Gold Bond you invest in 24 carat i.e. 99.9% pure gold. Investments in SGBs earn an annual interest of 2.50%. If money is needed, a loan can also be taken against the bond.
The price of the bond is decided on the basis of the published rate of Indian Bullion and Jewelers Association Limited i.e. IBJA. In this, the average of the rates of the last three days of the week preceding the subscription period is calculated.
No worries about purity and safety
There is no need to worry about accuracy in SGBs. According to the National Stock Exchange (NSE), the price of gold bonds is linked to the price of gold of 24 carat purity published by the Indian Bullion and Jewelers Association (IBJA). Along with this, it can be kept in the form of demat, which is quite safe and there is no expense on it.
You can invest in maximum 4 kg gold
Through SGBs, a person can invest a minimum of 1 gram and a maximum of 4 kilograms of gold in a financial year. In case of joint holding, the investment limit of 4 kg will be applicable on the first applicant only. Whereas the maximum limit of purchase for any trust is 20 kg.
Tax has to be paid on selling bonds before 8 years
The maturity period of Sovereign is 8 years. After completion of the maturity period, there is no tax on the profits arising from it. Whereas if you withdraw your money after 5 years, then the profit arising from it is taxed at 20.80% in the form of Long Term Capital Gain (LTCG).
