HOW SOVEREIGN GOLD BONDS TAXED?

Open for subscription

The second tranche of the sovereign gold bonds open for subscription on 22nd Aug & will close on 26th August, 2022

Who can invest?

SGB s can be held by a resident individual, a university, a charitable institution, a HUF, a trust or on behalf of minor child.

How to Buy?

SGBs will be sold through commercial banks, Stock Holding Corporation of India Limited , Clearing Corporation of India (CCIL), designated post offices, National Stock Exchange (NSE), and Bombay Stock Exchange (BSE). You can't buy from small finance banks and payment banks

What is the denomination?

The SGBs will be denominated in grams and multiple of 1gm. One gram is the base unit for SGB

What is the issue price?

The issue price is Rs. 5,197/- per gram of gold. The issue price of SGBs will be less by Rs.50 per gram for investors who take it online. The issue price for such investors is Rs. 5,147/- per gram of gold.

What is the tenor?

The SGB have an 8 year renor with the option to redeem early after the 5th year on the date interest is due

How SGB Taxed?

If SGB sold after 8 year lock-in period, the whole profit on it will be exempted from taxable income. If you sold after 5 year then it attracts 20% with indexation

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