The maturity period of Sovereign is 8 years.
Sovereign Gold Bond: The government is going to issue two new installments of Sovereign Gold Bond. The first installment will be released in December and the second installment in February. The first installment will open on 18-22 December. Whereas the second installment will open on 12-16 February 2024. However, any information at what rate these will be issued has not been given. Sharing some useful information about Sovereign Gold Bond so that you too can earn profit by investing in it.
What Is Sovereign Gold Bond?
A Sovereign Gold Bond is a government bond. It can be converted into demat. This bond is of 1 gram of gold, that is, the price of the bond will be the same as the price of 1 gram of gold. It is issued by the Reserve Bank Of India (RBI). You will get a discount of Rs 50 per gram on applying online and making digital payments.
Investment In 24 Carat, i.e. 99.9% Pure Gold
In Sovereign Gold Bond you invest in 24 carats, 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 based on 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.
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 for it.
Investment In A Maximum 4 Kg Of 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 the case of joint holding, the investment limit of 4 kg will apply to the first applicant only. Whereas the maximum limit of purchase for any trust is 20 kg.
Tax To Be Paid On Selling Bonds Before 8 Years
The maturity period of Sovereign is 8 years. After the completion of the maturity period, there is no tax on the profits made 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).
Sovereign Gold Bond Scheme was launched by Govt in November 2015, under Gold Monetisation Scheme.