Sovereign Gold Bond Scheme 2021-22. Read Schedule of issuance, eligibility, redemption, Tax treatment, Nomination and other Terms and Conditions
The Government of India, in consultation with the Reserve Bank of India, has decided to issue Sovereign Gold Bonds. The Sovereign Gold Bonds will be issued in six tranches from May 2021 to September 2021 as per the calendar specified below:
Sr. No. | Tranche | Date of Subscription | Date of Issuance |
1. | 2021-22 Series I | May 17–21, 2021 | May 25, 2021 |
2. | 2021-22 Series II | May 24–28, 2021 | June 01, 2021 |
3. | 2021-22 Series III | May 31-June 04, 2021 | June 08, 2021 |
4. | 2021-22 Series IV | July 12-16, 2021 | July 20, 2021 |
5. | 2021-22 Series V | August 09-13, 2021 | August 17, 2021 |
6. | 2021-22 Series VI | August 30-September 03, 2021 | September 07, 2021 |
The Bonds will be sold through Scheduled Commercial banks (except Small Finance Banks and Payment Banks), Stock Holding Corporation of India Limited (SHCIL), designated post offices, and recognised stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange Limited.
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.
The bonds will be issued in denominations of one gram of gold or multiples thereof. The minimum limit of subscription for the Bonds is one gram and maximum limit per fiscal year is 4 kg for individuals/ HUF and 20 kg for trusts and similar entities notified. In case of joint holding, the above limits shall be applicable to the first applicant only. Also the annual ceiling will include bonds subscribed under different tranches during initial issuance by Government and those purchased from the secondary market. The ceiling on investment will not include the holdings as collateral by banks and other Financial Institutions.
The nominal value of Gold Bonds shall be in Indian Rupees fixed on the basis of simple average of closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Limited, for the last 3 working days of the week preceding the subscription.
The issue price of the Gold Bonds will be 50 per gram less than the nominal value to those investors applying online and the payment against the application is made through digital mode.
The interest on the Gold Bonds shall commence from the date of issue and shall be paid at a fixed rate of 2.50 percent per annum on the nominal value of the bond.
The interest shall be payable in half-yearly rests and the last interest shall be payable along with the principal on maturity.
All payments for Gold Bonds shall be accepted in Indian Rupees through cash (upto a maximum of 20,000/-) or demand draft, or cheque or electronic banking
The Gold Bonds shall be repayable on the expiration of eight years from the date of the issue of the Bonds. The 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. 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.
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.
The Gold Bonds issued in the form of Stock Certificate are transferable by execution of an Instrument of transfer in Form ‘F’.
The Gold Bonds are eligible for trading from’ such date as may be notified by the Reserve Bank of India.
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