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30/01/21 09:20 AM IST

Sovereign Gold Bond scheme

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The eleventh tranche of the Sovereign Gold Bond scheme 2020-21 will be available for five days starting February 1, 2021.

Sovereign Gold Bond Scheme
  • It was launched by Govt in November 2015, under Gold Monetisation Scheme. Under the scheme, the issues are made open for subscription in tranches by RBI in consultation with GOI.
  • RBI Notifies the terms and conditions for the scheme from time to time. The subscription for SGB will be open as per following calendar.
  • The rate of SGB will be declare by RBI before every new tranche by issuing a Press Release.
  • As per RBI instructions “Every application must be accompanied by the ‘PAN Number’ issued by the Income Tax Department to the investor(s)’’ as the PAN number of the first/ sole applicant is mandatory.
Gold bond advantages over physical gold
  • A sovereign gold bond is a better investment than physical gold because of many reasons.
  • These gold bonds allow you to get a lower price than physical gold when applied online.
  • Fixed interest rate on these gold bonds.
  • Gold bonds have no holding or storage cost.
  • These bonds carry a sovereign guarantee since they are issued by the government.
  • Another benefit of sovereign gold bond scheme is that there is no capital gains tax at maturity or redemption for individual investors. Also, there is indexation benefit if the same is transferred before maturity for non-individual investors.
Source: PIB

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