The latest series of Sovereign Gold Bonds (SGB) from the RBI i | theincomet

The latest series of Sovereign Gold Bonds (SGB) from the RBI is open for subscription. Here is what you should know:

Subscription date

The first tranche of SGBs will be available for subscription from 19 June 2023 (Monday) to 23 June 2023 (Friday). Investors can buy SGBs through Upstox.

Issue price

Issue price for these bonds is set at ₹5,926 per gram. There is a discount of ₹50 per gram for those investors who subscribe and pay through digital mode, bringing the effective price to ₹5,876 per gram.

Interest payment

Investors get 2.5% interest on investment, which is payable semi-annually. Investors also benefit from capital appreciation on gold prices.

Investment limit

Minimum investment is 1 gram. One can apply for SGBs in multiples of 1 gram. The maximum limit of subscription is 4 kilograms for individuals.

Eligibility and tenor

SGBs have a maturity of eight years, but exit options are available from the fifth year onwards. Indian resident individuals, HUFs, Trusts, Universities and Charitable Institutions are eligible to apply.

Tax treatment

Interest on SGB is taxed as per the individual's tax slab. In addition, there is no capital gains tax on redemption of these bonds. However, selling SGBs in the secondary market before maturity invites tax at the rate of 20% on capital gains arising on such transactions. Indexation benefits are available if the SGBs are sold after three years.