Key points you should know before investing in Sovereign Gold Bond Scheme 2020-21 Series XII

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On behalf of Government of India, The Reserve Bank of India has opened for Subscription of Sovereign Gold Bond Scheme 2020-21 Series XII which is last in this financial year. This subscription is open from March 1, 2021 to March 5, 2021 i.e Only 5 days.

Below are the Key points to note before investing in Gold bonds

What is Sovereighn Gold Bond

Sovereign Gold Bonds are government securities denominated in grams of gold. They are an alternative mode for holding physical gold. Investors have to subscribe by paying the issue price and the bonds will be redeemed on maturity. The Bond is issued by Reserve Bank on behalf of Government of India.

Who can Invest

Anyone who are interested to buy such as Resident Indian Individual , HUF, Charity Institutions, Trusts, or an Univsersity by susbcribing them by paying necessary issue price.

What is the issue price

The issue price of the bond is ₹4662/- per gram which is based on the simple average closing price for gold of 999 purity of the last three business days of the week preceding the subscription period, i.e. February 24 – 26, 2021.

Government of India has decided to offer a discount of ₹50/- per gram for those who applying online and the payment made through online mode or digital platform.

How much you can buy

This bond will be issued in denomination of one gram and multiple thereof. Minimum limit of subscription is one gram and maximum is 4Kg for Individual , Hindu Undived Famly (HUF) and 20 KG for Trusts as notified by Govt of India.

Interest Rate and Maturity

Interest on the Gold bond shall start from date of issuence and shall be paid a fixed rate of 2.50 % per annum on the value of Bond. The interested shall be payable half yearly rests and last period interest will be paid along with redemption amount.

Sovereign Gold bonds takes maturity after 8 years from the date of issuence and pre-maturity redemption is allowed from 5th year onwards.

Taxation

Interest earned on Gold bonds are taxable however if you hold them till maturity, capital gain Tax is exempted for Individuals. These bonds are tradable and you may sell at secondary market subject to tax provisions.

How to buy

You can buy from Authorized banks and trading platforms such as NSE and BSE by paying online or cash in bank , Demand draft too. You will get Bond certificate which show the number units of Gold you subscribed along with conditions and maturity details. You can also provide nominee for this.

Last Date:

Issue starts on March 1, 2021 and ends on March 5,2021.

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