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Economy, Schemes & Policies
Mahesh

17/06/23 05:58 AM IST

Sovereign Gold Bond Scheme 2023-24

In News
  • The Government of India, in consultation with the Reserve Bank of India, has decided to issue Sovereign Gold Bonds (SGBs) in tranches.
About SGBs
  • The first SGB scheme was launched by the Government in November 2015, under Gold Monetisation Scheme with an objective to reduce the demand for physical gold and shift a part of the domestic savings - used for the purchase of gold - into financial savings.
  • The bond will be Issued by the Reserve Bank of India on behalf of the Government of India.
  • The tenor of the SGB will be for a period of eight years with an option of premature redemption after 5th year.
  • Minimum permissible investment will be One gram of gold.
  • The maximum limit of subscription shall be 4 Kg for individuals, 4 Kg for HUF and 20 Kg for trusts and similar entities per fiscal year (April-March) notified by the Government from time to time.
  • In case of joint holding, the investment limit of 4 Kg will be applied to the first applicant only.
  • Price of SGB will be fixed in Indian Rupees on the basis of simple average of closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Limited
  • SGBs will be sold through Scheduled Commercial banks (except Small Finance Banks, Payment Banks and Regional Rural Banks), Stock Holding Corporation of India Limited, Clearing Corporation of India Limited, designated post offices and National Stock Exchange of India Limited and Bombay Stock Exchange Limited, either directly or through agents.
  • The interest on SGBs shall be taxable as per the provision of the Income Tax Act, 1961. The capital gains tax arising on redemption of SGB to an individual is exempted.
Source- PIB

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