The Reserve Bank of India announced the sale of the third tranche of sovereign gold bonds this year through a circular issued to banks on Monday. The bonds will be issued at the price of Rs.2,956 per gram. Those applying for these bonds online are entitled to a discount of Rs.50 per gram.
The sale will begin on 9 October 2017 and go on till 27 December 2017, however, the bonds will be available for purchase only between Monday and Wednesday of every week.
Those investing in these bonds will earn an interest of 2.5%. As per the provisions of the Income Tax Act, 1961, the interest earned on these SGBs are taxable. However, there is an exemption of capital gains tax incurred on the redemption of the bonds. The investment will be paid out upon the completion of 8 years from the date of issue. Investors can redeem these bonds prematurely after the fifth year, but only on the interest payment dates.
Who can buy these sovereign gold bonds? Any resident Indian, trusts, charitable institutions and universities are eligible to buy the bonds, however, there is a different cap on the maximum purchase limit for each category. For individuals, whether jointly with another individual or a minor, can purchase up to 4 kilograms of gold per year. Charities and trusts have a cap of 20 kilograms annually.
All information, including but not limited to news articles, published on this website are strictly for general information purpose only. BankBazaarnews.com does not provide any warranty about the authenticity and accuracy of such information. BankBazaarnews.com will not be held responsible for any loss and/or damage that may arise or is incurred by use of such information. Rates and offers as may be applicable at the time of applying for any product may vary from the information mentioned above. Please visit www.bankbazaar.com for the latest rates/offers.
Copyright reserved © 2018 A & A Dukaan Financial Services Private Ltd. All rights reserved.