Home Blogs Sovereign Gold Bond Scheme 2023-24 Series IV opens from Feb 12 to 16, 2024

Sovereign Gold Bond Scheme 2023-24 Series IV opens from Feb 12 to 16, 2024

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Key Details about the Sovereign Gold Bonds Scheme 2023-24 Series IV

Issue dates – The issue will open from Feb 12 to 16 Feb, 2024

Date of allotment – 21 Feb, 2024

Issue Price – The issue price has been fixed at Rs. 6,263 per gram. The issue price for Series III which was launched during Dec 18 – 22, 2023 was fixed at Rs. 6,199 per gram

The government offers a discount of Rs 50 per gram less than the nominal value to those investors applying online and making the payment through a digital mode.

SeriesMonthPrice per Gram
Series – 1June-2023Rs. 5,926
Series – 2September – 2023Rs. 5,923
Series – 3December-2023Rs. 6,199
Series – 4February- 2023Rs. 6,263

Minimum Investment:  1 gram

Maximum investment: 4 kilograms for Individuals, HUF

20 kilograms for Trusts, universities and charitable institutions

Interest and its Taxability: The bonds are issued at a fixed interest rate of 2.5% p.a. The interest on bonds is taxable and is credited semi-annually to the bank account of the investor.

Tenure: The tenure of these bonds is 8 years. However, you can choose to exit the bond from the fifth year (only on interest payout dates).

Capital Gains at Maturity:  Capital gain tax on redemption of SGBs is exempted in the case of individual. This means if the bonds are redeemed after 8 years then there is no tax on individual.

Capital Gains on early redemption

Short-term Capital Gains Tax

If you sell the bond before the completion of 36 months of investment, your gains will be charged as short-term capital gains tax. The STCG charged to you will be the same as the income tax slab applicable to your income.

 Long-term Capital Gains Tax

If you sell the SGB after 36 months, you are taxed as per the Long Term Capital Gains(LTCG) tax. The LTCG on SGB is charged at 10% without indexation benefits or 20% with indexation benefits. You can choose the lower one.

Indexation means that the real capital gains are calculated after accounting for inflation in the purchased price of the bond.

Where to buy SGBs : You can buy and sell SGBs through banks, recognised stock exchanges or their agents or in secondary market

Advantages of investing in Sovereign Gold Bonds

  • There is no tax on capital gains tax on redemption of bonds at maturity in the hands of individual
  • The bonds can be used as collateral for loan
  • There is no GST and making a charge to be paid on buying or selling Sovereign Gold Bond.
  • The bonds can also be easily traded on the stock exchange.
  • Unlike Physical gold, there is no storage cost  
  • No TDS is deducted on interest from SGB

Disadvantages of investing in Sovereign Gold Bonds

  • The bonds have a long maturity period of 8 years
  • The price of bonds are directly linked to the price of gold and may result in capital loss
  • Unlike other investment options, you can’t invest in sovereign gold bonds at any time.

Should I invest in Sovereign Gold Bonds?

You can invest in SGB if you are looking to diversify your portfolio. Moreover, gold bonds can also be a good option if you take non-physical exposure to gold. 

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