Sovereign Gold Bonds
Sovereign Gold bonds are issued by RBI on behalf of Govt. of India. They are issued during a certain time window periodically. Below are the features of these bonds:
Advantages of
investing in Sovereign Gold bonds?
- Demat format - no security worries / no locker charges
- 100% safe & guaranteed
- Discount of 50/- per gm (Current Issue Price: 6,213/- per gm)
- 100% Tax-free on maturity (8 years)
- Extra 2.50% p.a. as interest (payable half-yearly)
What is the
tenure of these bonds?
8 years;
But there is an exit option after 5 years.
What is the
minimum & maximum amount that can be invested?
Minimum: 1
gm
Maximum: 4
kg per person per financial year
Taxability
aspects
- Held till Maturity: Tax-Free
- Exit after 5 years before maturity: Capital Gains
tax @ 20% post indexation
- Interest payable half-yearly: Taxable as per your
slab rate
Final Words:
If you are
looking for investment in Gold as a long-term accumulation for say marriage,
etc. then you may consider to invest in these bonds. It is certainly
a better replacement for physical gold. But if you are looking at
tactical buying / selling to book quick profits or looking for short-term rise
in gold value, then these bonds can be given a miss. Also it is better to limit
the gold exposure to about 5-10% of your total portfolio too…
