There will be a chance to invest in gold bonds till January 15.
Sovereign Gold Bond: The 10th trunk of Sovereign Gold Bond is opening from today. Under this scheme, you will get a chance to buy at least 1 gram of gold. Also, on making digital payment, you will get a special discount per gram.
- January 11, 2021, 7:54 AM IST
Gold bonds will get an interest of 2.5 percent annually. Investors also have the facility to take loans against gold bonds. Both capital and interest are guaranteed by the government (sovereign). Individuals will not have to pay long term capital gains tax. Gold bonds can be used as collaterals for taking loans. Apart from this, TDS is also not deducted when investing in gold bonds. A minimum of 1 gram of gold can be invested under this scheme.
Also read: ATM cards are being used, remember these 9 things, otherwise there may be losses
What are the conditions of maturity?Gold bonds have a maturity of 8 years. However, this can be exited after the fifth year of investment. The price of gold on maturity is based on the current price. If you also want to invest in it, then first of all you should know these things.
What is the maximum investment I can make in a year?
In a Sovereign Gold Bond Scheme, a person can buy up to 400 grams of gold bonds in a financial year. At the same time, minimum investment is one gram. You can save tax by investing in this scheme. Bonds will be banned for sale to trustee individuals, HUFs, trusts, universities and charitable institutions.
Also Read: SBI Gives Good News to Crores of Customers! Increase interest rates on FD, check latest rates
RBI has fixed the price of gold under the Gold Bond based on the average closing price published by the Indian Bullion and Jewelers Association (IBJA). This is for 999 purity gold.
The Sovereign Gold Bond Scheme was launched in November 2015. To reduce the demand for physical gold in the country and people started to save domestic and financial savings through gold.
Gold bonds can be invested through small finance banks or payment banks, stock holding corporations of India, post office, and NSE and BSE.
Experts believe that Sovereign Gold Bond is an effective way to invest in non-physical gold. If an investor in a gold bond stays till maturity, they get many benefits.
The most important thing about investing in gold bonds is that you do not have to worry about its storage. No GST is also payable on keeping it in Demat.
If any capital gains are made on the maturity of the gold bond, then it will be exempt. This is an exclusive benefit on gold bonds.