Sovereign Gold Bonds 2021-22 (Series II) will be open for subscription through May 24-28, 2021 with settlement date June 01, 2021. The situation price tag of the Bond through the subscription period shall be Rs 4,842 per gram, even though for on the web purchasers, the price tag per ten gram will be Rs 4,792 immediately after a discount of Rs 50.
The Sovereign Gold Bonds 2021-22 (Series I) had opened on May 17 and closes on May 21, 2021, with Settlement date May 25, 2021. The situation price tag of the Series I Bond was Rs 4,777 and Rs 4,727 for on the web purchasers. The situation price tag of Sovereign Gold Bonds 2021-22 Series II is Rs 65 per 10 gram greater than Series I.
Earlier, the Government of India, in consultation with the Reserve Bank of India, had decided to situation Sovereign Gold Bonds 2021-22. The Sovereign Gold Bonds will be issued in six tranches from May 2021 to September 2021.
The Bonds will be sold by means of Scheduled Commercial banks (except Small Finance Banks and Payment Banks), Stock Holding Corporation of India Limited (SHCIL), designated post offices, and recognised stock exchanges like National Stock Exchange of India Limited and Bombay Stock Exchange Limited.
Features of Sovereign Gold Bond 2021-22
The investors will get fixed interest price of 2.50 % per annum payable semi-annually on the quantity invested.
The bonds are issued by the Reserve Bank of India on behalf of the Government of India. The Bonds will be restricted for sale to resident folks, HUFs, Trusts, Universities and Charitable Institutions. The Bonds will be denominated in multiples of gram(s) of gold with a fundamental unit of 1 gram.
The tenor of the Bond will be for a period of 8 years with exit alternative immediately after 5th year to be exercised on the next interest payment dates.
The minimum permissible investment will be 1 gram of gold. The maximum limit of subscription shall be 4 KG for person, 4 Kg for HUF and 20 Kg for trusts and equivalent entities per fiscal (April-March) notified by the Government from time to time.
A self-declaration to this impact will be obtained. The annual ceiling will contain bonds subscribed beneath various tranches through initial issuance by Government and these bought from the Secondary Market. In case of joint holding, the investment limit of 4 KG will be applied to the initial applicant only.
Price of Bond will be fixed in Indian Rupees on the basis of very simple typical of closing price tag of gold of 999 purity, published by the India Bullion and Jewellers Association Limited for the last 3 working days of the week preceding the subscription period. The redemption price tag will be in Indian Rupees based on very simple typical of closing price tag of gold of 999 purity, of earlier 3 working days published by IBJA Ltd.
The interest on Gold Bonds shall be taxable as per the provision of the Income Tax Act, 1961 (43 of 1961). The capital gains tax arising on redemption of SGB to an person has been exempted. The indexation rewards will be offered to extended term capital gains arising to any individual on transfer of bond.