Sovereign Gold Bonds are government securities and are an alternative to physical gold. Sovereign Gold Bond is issued by the Reserve Bank of India (RBI) on behalf of the Government of India.
New Delhi. The rate for premature redemption of Sovereign Gold Bond ie SGB has been fixed at Rs 5,115 per unit. The Reserve Bank of India (RBI) gave this information in a statement.
Gold Bonds Can Be Redeemed Even Before Maturity
As per RBI instructions, Sovereign Gold Bonds have a maturity period of 8 years but lock-in period is 5 years i.e. on the date of next interest payment after completion of 5 years from the date of purchase of Gold Bond. Premature redemption may be allowed. The due date for the third series of SGB 2016-17 released on November 17, 2016 is May 17, 2022.
RBI said in a statement, “For SGB redemptions before May 17, 2022, there will be a redemption value of Rs 5,115 per unit. This price is based on the average of the closing price of gold between May 9 and 13.
TDS is not applicable on bonds
Taxmanager.in Chief Executive Deepak Jain said that interest earned from SGBs will be taxed as income from other sources whereas TDS is not applicable on bonds.
What is Sovereign Gold Bond
Sovereign Gold Bonds are government securities and are an alternative to physical gold. Sovereign Gold Bond is issued by the Reserve Bank of India on behalf of the Government of India.
Where can I buy Sovereign Gold Bonds?
It is noteworthy that Sovereign Gold Bonds will be sold through all banks, Stock Holding Corporation of India Limited (SHCIL), post office and recognized stock exchanges, NSE and BSE. Please tell that they are not sold in Small Finance Bank and Payment Bank.
It is worth mentioning that in the Sovereign Gold Bond Scheme, a person can buy a maximum of 4 kg of gold bonds in a financial year . At the same time, it is necessary to have a minimum investment of one gram. At the same time, trusts or similar entities can buy bonds up to 20 kg. Let us tell you that the applications are issued in at least 1 gram and its multiples.
