RBI mandated certificates issued against grams of gold, allowing individuals to invest in gold without the strain of safekeeping their physical asset.
When was the scheme SGB launched ?
Scheme was launched by Govt in November 2015, under Gold Monetisation Scheme.
Why did SGB start ?
To offer a superior alternative to holding gold in physical form. Also, SGB is free from issues like making charges and purity in the case of gold in jewellery form.
When is Govt. selling second tranche of Gold?
Scheme is opening for subscribers on 11th September 2023. The issue will remain open for bidding till 15th September 2023.
What will be the nominal value of the bond?
Based on the average of closing price for gold of 999 purity of last three working days works out to ₹5,923/- (per gram of gold." However payment through digital mode will be ₹5,873/-
Tax Implications
The interest on SGBs shall be taxable as per the provision of Income Tax Act, 1961 (43 of 1961). The capital gains tax arising on redemption of SGB to an individual is exempted.
Interest Rate
The investors will be compensated at a fixed rate of 2.50 percent per annum payable semi-annually on the nominal value.