Sovereign Gold Bonds: Applications for the scheme will be accepted from 1st September to 9th September, 2016. The bonds will be issued on September 23, 2016
Government on Tuesday announced fifth tranche of the Sovereign Gold Bond that will open from September 1st. Sovereign gold bond was launched by government last year in a bid to contain the physical gold demand.
“Applications for the Sovereign Gold Bonds will be accepted from 1st September to 9th September, 2016. The bonds will be issued on September 23, 2016, ” a Finance Ministry release said.
The bonds will be be made available through banks, Stock Holding Corporation of India Limited (SHCIL), designated post offices and recognised stock exchanges – NSE and BSE.
The gold bonds investor will be compensated at a fixed interest rate of 2.75 per cent per annum payable semi-annually on the initial value of investment, which will be taxable as per the provision of Income Tax Act, 1961 (43 of 1961). The capital gains tax arising on redemption of Sovereign gold bond to an individual has been exempted. The indexation benefits will be provided to long term capital gains arising to any person on transfer of bond.
Eligibility wise, the bonds will be restricted for sale to resident Indian entities including individuals, HUFs, Trusts, Universities and Charitable Institutions. It will be denominated in multiples of gram(s) of gold with a basic unit of 1 gram. -The tenure of the Bond will be for a period of 8 years with exit option from 5th year to be exercised on the interest payment dates.
According to Finance Ministry release, “Minimum permissible investment will be 1 gram of gold. The maximum amount subscribed by an entity will not be more than 500 grams per person per fiscal year (AprilMarch).
A self-declaration to this effect will be obtained.”