The Government of India launched its Sovereign Gold Bond 2017-18 Series IV (SGBs) from 16 Oct to 18 Oct. 2018. Issue price for the Sovereign Gold Bond for this tranche has been fixed at Rs. 2,987 per gram and issue price is Rs (2987-50) = Rs. 2937 for online application.
Issue Details
| Gold Bond | Sovereign Gold Bond 2017-18 Series IV |
|---|---|
| Issue Open | 16 Oct 2017 |
| Issue Close | 18 Oct 2017 |
| Issuance | Reserve Bank of India on behalf of Govt of India |
| Tenor | 8 Years (Exit option from 5th year) |
| Price Band | Rs. 2,987 per gram (Rs. 50 Discount for online subscription & digital payment) |
| Maximum Limit | Minimum 1 grams of gold, Maximum- 4 Kgs of gold per person in a fiscal year (April- March). Available in units of one gram of gold & multiples thereof. |
| Interest Rate | Fixed Rate 2.50% per annum payble semi-annually on the initial value of investment (No TDS) |
| 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. |
Comparison
Comparison of Physical Gold, Gold ETF & Sovereign Gold Bond 2017-18 Series I :
| 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 |
Sovereign Gold Bond – Call your Broker , agent , distributors, financial advisor
For Investment in this Sovereign Gold Bond 2017-18 Series IV – Mobile: 77 1991 7444
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