Sovereign Gold Bond Scheme 2020-21. Terms & Procedure for making application
Sovereign Gold Bond Scheme 2020-21
What is Sovereign Gold Bond Schemes ?
The Sovereign Gold Bond Schemes (SGBs) are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. The Bond is issued by Reserve Bank on behalf of Government of India.
Government of India has vide its Notification No F.No4.(4)-B (W&M)/2020 dated October 9, 2020 has announced the Sovereign Gold Bond Scheme 2020-21, Series VII, VIII, IX, X. XI and XII.
Under the SGB 2020-21 there will be a distinct series (starting from Series VII) for every tranche. The terms and conditions of the issuance of the Bonds are as per the above notification.
Eligibility for Investment
The Gold Bonds under this Scheme may be held by a Trust, HUFs, Charitable Institution, University or by a person resident in India, being an individual, in his capacity as such individual, or on behalf of minor child, or jointly with any other individual.
Denomination, Subscription limit and Pricing
Date and form of issue of Gold Bonds
Date / Calendar of Issue
The date of issuances shall be as per the details given in the calendar below
|Sr. No.||Tranche||Date of Subscription||Date of Issuance|
|1.||2020-21 Series VII||October 12 – 16, 2020||October 20, 2020|
|2.||2020-21 Series VIII||November 09 – 13, 2020||November 18, 2020|
|3.||2020-21 Series IX||December 28 2020 – January 01, 2021||January 05, 2021|
|4.||2020-21 Series X||January 11-15, 2021||January 19, 2021|
|5.||2020-21 Series XI||February 01- 05, 2021||February 09, 2021|
|6.||2020-21 Series XII||March 01- 05, 2021||March 09, 2021|
Period of subscription.
The Subscription of the Gold Bonds under this Scheme shall be open (Monday to Friday) on the dates specified above, provided that the Central Government may, with prior notice, close the Scheme at any time before the period specified above.
Procedure for making application for subscription to Gold Bonds.
(i) Any person who is desirous of subscribing to the Gold Bonds shall apply to any receiving office in Form ‘A’ or in any other form as near as thereto, stating clearly the grams of gold, full name and address of the applicant/s.
(ii) Every application shall contain such documents and particulars as specified in the instructions contained in the Application Form.
(iii) Every application must be accompanied by the ‘PAN Number’ issued by the Income Tax Department to Individuals and other entities.
(iv) On receipt of an application under sub paragraph (i), the receiving office shall issue an acknowledgment receipt in Form ‘B’, if all requirements of the application are fulfilled.
(v) An incomplete application is liable to be rejected.
(i) The interest on the Gold Bonds shall commence from the date of issue and shall be paid at a fixed rate of 2.50 per cent per annum on the nominal value of the bond.
(ii) The interest shall be payable in half-yearly rests and the last interest shall be payable along with the principal on maturity.
(i) The Gold Bonds shall be repayable on the expiration of eight years from the date of the issue of the Bonds: Provided that premature redemption of Gold Bonds may be permitted after fifth year from the date of issue of Bonds and such repayments will be made on next interest payment date.
(ii) On maturity, the Gold Bonds shall be redeemed in Indian Rupees and the redemption price shall be based on simple average of closing price of gold of 999 purity of previous 3 working days, published by the India Bullion and Jewelers Association Limited. (iii) The RBI / depository shall inform the investor one month in advance, about the date of maturity of the Bond.
Loan against Bonds
(i) The Gold Bonds issued under this Scheme may be used as collateral security for availing any loan. Such loans could be granted by marking lien on SGB appropriately.
(ii) The Loan to Value ratio as applicable to any ordinary gold loan mandated by the Reserve Bank of India shall also apply to the Bonds issued under this Scheme.
Note: The loan against SGBs would be subject to decision of the bank/financing agency, and cannot be inferred as a matter of right.
- Waiver of additional fees of overdue filings by struck off companies restored by NCLT order u/s 252
- e-portal for filing Petition of tax evasion/Benami Properties/Foreign Undisclosed Assets
- Expenses on awareness campaigns/programmes on COVID-19 Vaccination is eligible CSR activity
- Faceless Penalty Scheme 2021 -Exception where few provisions not applicable to the Scheme
- Faceless Penalty Scheme 2021 notified by CBDT. Read Procedure in Penalty
The interest on the Gold Bond shall be taxable as per the provisions of the Income-tax Act, 1961 (43 of 1961). The capital gains tax arising on redemption of these bonds to an individual is exempted. The indexation benefits will be provided to long-term capital gains arising to any person on transfer of bond.
(i) Nomination of and its cancellation shall be made in Form ‘D’ and Form ‘E’, respectively, in accordance with the provisions of the Government Securities Act, 2006 (38 of 2006) and the Government Securities Regulations, 2007, published in part III, Section 4 of the Gazette of India dated the 1st December 2007.
(ii) An individual Non-Resident Indian may get the security transferred in his name on account of his being a nominee of a deceased investor; Provided that the Non-Resident investor shall need to hold the security till early redemption or till maturity; Provided further that the interest and maturity proceeds of the investment shall not be repatriable.