RBI announces premature redemption dates for Sovereign Gold Bonds (SGBs). Check details here
SGBs are the perfect alternative to investment in physical gold. With these bonds, you can enjoy capital appreciation and also earn interest every year.
The minimum investment in the bond is one gram with a maximum limit of 4 kg for individuals each fiscal year. Eligible investors include individuals, HUFs, trusts, universities, and charitable institutions.
Interest on Sovereign Gold Bonds is paid @ 2.50% on the issue price and is credited to your bank account on a half-yearly basis. “The interest received on Sovereign Gold Bonds is fully taxable.
As far as profits made at the time of redemption of Sovereign Gold Bonds are concerned, the same is fully tax-free in your hands. This rule for profits made on redemption applies, whether at the end of the original tenure of 8 years or on early redemption which is allowed after 5 years," said Mumbai-based tax and investment expert Balwant Jain.
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