The Government is launching its 4th Sovereign Gold Bonds (SGB) from 18 July to 22 July 2016. Issue price for the 4th tranche has been fixed at Rs. 3,119 per gram.
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[wptabtitle] Issue Details[/wptabtitle] [wptabcontent]
| Gold Bond | Sovereign Gold Bond 2016-17 Tranche 1 |
|---|---|
| Issue Open | 18 July 2016 |
| Issue Close | 22 July 2016 |
| Issuance | Reserve Bank of India on behalf of Govt of India |
| Tenor | 8 Years (Exit option from 5th year) |
| Price Band | Rs. 3,119 per gram |
| Maximum Limit | 500 grams per person per fiscal year (Apr-Mar) |
| Interest Rate | Fixed Rate 2.75% per annum payble semi-annually on the initial value of investment |
| Collateral | Bond can be used as collateral for loans. |
| Tradability (Liquidity) | Bonds will be tradable on Exchange |
| Tax Treatment | The Interest on Gold Bonds shall be taxable. The capital gain tax arising on redemption of SGB to an individual has been exempted. |
| Indexation | The Indexation benefits will be provided to long term capital gains arising to any person on transfer of bond. |
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[wptabtitle] Comparison[/wptabtitle] [wptabcontent]
Comparision of Physical Gold, Gold ETF & Sovereign Gold Bonds :
| Physical Gold | Gold ETF | Sovereign Gold Bond | |
|---|---|---|---|
| Returns | Lower than Actual Return on gold | Lower than Actual Return on gold | Higher than Actual Return on gold |
| Safety | Risk on handling physical gold | High | High |
| Purity of Gold | Purity of gold always remains a question | High as it Electronic Form | High as it Electronic Form |
| Wealth Tax | Wealth Tax applicable @ 1% on the total valuation of the asset every year | Not Applicable | Not Applicable |
| Capital Gain | Long term Capital Gain Tax applicable after 3 years | Long term Capital Gain Tax applicable after 3 years | Long term Capital Gain Tax applicable after 3 years ( No Capital Gain Tax if held till maturity) |
| Collateral Against Loan | Yes | No | Yes |
| Storage Cost | High | Very low | Very low |
[wptabtitle] Listing Details[/wptabtitle] [wptabcontent]
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7, Omkar Corner, opp Cosmos Bank ,
Tilak Road, Sadashiv Peth,
Pune 411030
Mobile: 77 1991 7444
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