Sovereign Gold Bond | Gold Bond, Gold, The Opportunity To Buy Cheap Gold From Today, The Government Will Issue Sovereign Gold Bonds By 21 May

Sovereign Gold Bond | Gold Bond, Gold, The Opportunity To Buy Cheap Gold From Today, The Government Will Issue Sovereign Gold Bonds By 21 May

People who apply online and make digital payments will get a discount of Rs 50 per gram

Bonds up to a minimum value of 1 gram and a maximum of 4 kg can be purchased in 1 financial year

The first sale of Sovereign Gold Bonds for the financial year 2021-22 has started from today. It can be invested in gold bonds till May 21. The price of gold has been kept at Rs 4777 per gram.

Those who apply online and pay by digital payment will also get a discount of Rs 50 per gram. Find out more about the Sovereign Gold Bond ...

What is a Sovereign Gold Bond?

Sovereign gold bonds are government bonds. It can be converted to Demat form. It is not valued in rupees or dollars, but in the weight of gold. If the bond is five grams of gold, the value of the bond will be the same as the value of five grams of gold. To buy it, you have to pay the issue price to an authorized broker of SEBI. The bonds are issued by the government through the Reserve Bank of India.

The RBI issues these bonds

The RBI declares this bond on behalf of the Government of India. According to the RBI, the bond price is based on the average closing price (published by the India Bullion and Jewelers Association) for the last 3 working days for 999 purity gold. Those who apply online and pay by digital payment will get a discount of Rs 50 per gram.

2.50% interest on the issue price

Sovereign gold bonds earn a fixed interest of 2.50% per annum on the issue price. This money is credited to your account every 6 months. You don't get this kind of benefit on physical gold and gold ETFs. According to the NSE website, one of the advantages of investing in Sovereign Gold Bonds is that there is no tax on profits after a maturity period of 8 years. In addition, there is no TDS on the interest paid every 6 months.

How much gold can be bought?

A person can buy a bond of value up to a minimum of 1 gram and a maximum of 4 kg in a financial year. However, the maximum purchase limit for the trust is 20 kg. The maturity period of the bond is 8 years. But investors get a chance to exit after 5 years. That means you can exit after 5 years if you want to exit this bond. According to the NSE, sovereign gold bonds can also be used as collateral when taking loans. Apart from this, these bonds can also be traded on the NSE.

No worries about purity and safety

Sovereign gold bonds do not have to worry about purity. According to the National Stock Exchange (NSE), the price of a gold bond is linked to the price of 24-carat gold refined by the Indian Bullion and Jewelers Association. At the same time, it can be kept in Demat form, which is quite safe and at no cost.

The maturity period of 8 years remains

The maturity period of the bond is 8 years. But investors get a chance to exit after 5 years. That is, you can cash it in after 5 years if needed. According to the NSE, this sovereign gold bond can also be used as collateral. Apart from this, these bonds also trade on the NSE. If there is any capital gain on the maturity of the gold bond, it is exempt.

How much tax to pay

Sovereign does not incur any tax on its benefits after a maturity period of 8 years. LTCG (Long Term Capital Gain) tax is levied on the benefit if you withdraw money after 5 years. LTCG is taxed at 20.80%. It also includes cess.

It can be easily purchased

You need to open a Demat account with your broker to buy gold. In it you can buy units of Gold ETF available on NSE and the amount will be deducted from the bank account linked to your Demat account.

Investments can also be made offline

The RBI has offered several options for investing in the scheme. Investments can be made through bank branches, post offices, stock exchanges, and stock holding corporations of India. The investor has to fill up an application form. The money is then deducted from their account. The bond is transferred to a Demat account. It is necessary to provide PAN to invest.

How appropriate is it to invest in this scheme?

Ajay Kedia, director, Kedia Commodities, says it is good to invest in gold for a long time. Because it does not affect the ups and downs and they get a fair return. The return is good on investing a minimum of 3 to 5 years in gold. The price of gold may go up from Rs 58,000 to Rs 60,000 in the next one year. Investing in this scheme would be the right decision. 

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Note:- Please always double-check and confirm the above details with the official website/advertisement/notification.

Important Links: 

To Buy Online: CLICK HERE | For Queries: CLICK HERE

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