Government of India, in consultation with the Reserve Bank of India, has decided to issue “Sovereign Gold Bonds”.
The Sovereign Gold Bonds will be issued in six tranches from April 2020 to September 2020
Details of Sovereign Gold Bond Scheme 2020 -2021 (Series IV)
|Issue Price for Online Mode||Rs. 4,802/- Per Gram (for applying online & payment in digital mode)|
|Issue Price for Other Mode||Rs. 4,852/- Per Gram|
|Issue Start Date||6th July, 2020|
|Issue Close Date||10th July, 2020|
|Bidding Session Time||9.00 A.M. to 5.00 P.M.|
|Minimum Bid Quantity||1 (gram)|
|Maximum Bid Quantity||4,000 (grams) for Individual, HUF &
20,000 (grams) for Trust and similar entities notified by Govt.**
*If you apply through online mode you get a Rs.50/- discount.
**The maximum limit of subscribed shall per fiscal (April-March) notified by the Government from time to time.
The annual ceiling will include bonds subscribed under different tranches during initial issuance by Government and those purchased from the Secondary Market.
Appreciation of Gold + Interest of 2.5% on the issue price & which is payable of half yearly basis.
Sovereign Guarantee on redemption of money (principal) as well as on the interest earned.
Tenure of 8 years with exit options in 5, 6 & 7 year. Tradeable on stock exchanges from the date to be notified by RBI.
Exemption from Capital Gains Tax on redemption No. TDS Applicable on Interest paid.
Will be provided on Long Term Capital Gains arising to any person on transfer of bond.
Accepted as collateral – Can be kept as collateral / security against Secured Loans.
*Please consult your Tax consultant for Taxation purposes.