Sovereign Gold Bond: The Reserve Bank issues these bonds on behalf of the Government of India. The government also gets 2.5 percent interest on it every year.
The Reserve Bank of India has announced the prices of the second installment of Sovereign Gold Bond – SGB to open from May 24. According to the information given on Friday, in the second installment, you will be able to buy gold in SGB at the price of Rs 4,842 per gram.
The second series of Sovereign Gold Bond Scheme (SGB) 2021-22 will open from May 24 and you can buy gold at this price till May 28. Under this, you can invest in 999 purity gold.
The price of each series is decided according to the average price of gold prices in the business days of 3 days ago.
SGB has an 8-year lock-in, although there is an option to withdraw money even after 5 years.
It is worth mentioning that earlier in the first installment of Sovereign Gold Bond, the price of 1 gram of gold was fixed at Rs 4,777 per gram. Under this installment, people were given an opportunity to invest in SGB from May 17 to May 21.
The Government of India has announced 6 installments of Sovereign Gold Bond (SGB) between May 2021 and September 2021. This bond is issued by the Reserve Bank of India on behalf of the Government of India.
Discount on Sovereign Gold Bond
If you invest in Sovereign Gold Bond (SGB) through a digital platform, you will get a rebate of Rs 50 per gram. Bonds equal to one gram of gold are issued in SGB.
If you make digital payment for SGB, then you have to pay only Rs 4,792 for 1 gram.
Sovereign Gold Bond: How to buy Sovereign Gold Bond?
You can invest in Sovereign Gold Bonds (SGB) through any bank. Apart from this, you can also purchase SGB through Post Office, National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) and Stock Holding Corporation of India. However, small finance bank and payment bank do not have this facility.
For this, the same KYC process will be done to buy physical gold and jewelery.
What are Sovereign Gold Bonds?
The Reserve Bank issues these bonds (Sovereign Gold Bond) on behalf of the Government of India. There is a lock-in of 8 years. You get 2.5 percent interest every year along with the investment.
1 bond represents one gram of gold. The total duration of the investment is 8 years, but from the 5th year of the investment, it gives an option to exit.
At least 1 gram of gold has to be invested in SGB. Whereas a person or HUF can subscribe to a maximum of 4 kg of gold. At the same time, this limit is 20 kg for the trust.
The Sovereign Gold Bond scheme was launched in November 2015 to reduce the demand for physical gold and convert it into financial savings instead of buying gold.
Tax on Sovereign Gold Bond
This option, considered the best way to invest in gold, is issued by the RBI. There is no tax on maturity. But, 2.5 percent interest earned annually from this bond will be added to your income and will be taxed according to the income slab.
If you sell this bond in the secondary market before a period of 5 years, it will be taxed like physical gold.
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