Sovereign Gold Bond Scheme 2023-24: New series opens for subscription at ₹6,263/gm; apply online for discount
₹6,263 per gram, according to the Reserve Bank of India (RBI). The Scheme will be open for subscription until 16 February. The Sovereign Gold Bond Scheme 2023-24 - Series IV will be open for subscription during February 12–16, 2024.
Investors applying online and making payments through digital mode will receive a discount of ₹50 per gram, resulting in an issue price of ₹6,213, the RBI said. The Sovereign Gold Bonds will be sold through various channels including scheduled commercial banks, post offices, and stock exchanges. The Sovereign Gold Bonds have a tenor of eight years with an option for premature redemption after the fifth year.
Interest is paid at a fixed rate of 2.50% per annum and is fully taxable. However, profits made on redemption are fully tax-free. “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. The exemption is applicable whether you acquired the SGB as an original subscriber or bought from a secondary market. This exemption on redemption is available only to an Individual and does not apply to other entities that are allowed to invest in SGB, he added.
If the bonds are transferred or sold, the profits made on the sale of these bonds become fully taxable as long-term or short-term depending on the holding period. “The holding period for SGB is 12 months to make their long-term capital assets. If sold/transferred after 12 months, you are entitled to claim the benefit of indexation while computing the taxable
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