sovereign gold bondThe 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 BondSovereign Gold Bond 2017-18 Series IV
Issue Open16 Oct 2017
Issue Close18 Oct 2017
IssuanceReserve Bank of India on behalf of Govt of India
Tenor8 Years (Exit option from 5th year)
Price BandRs. 2,987 per gram (Rs. 50 Discount for online subscription & digital payment)
Maximum LimitMinimum 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 RateFixed Rate 2.50% per annum payble semi-annually on the initial value of investment (No TDS)
CollateralBond can be used as collateral for loans.
Tradability (Liquidity)Bonds will be tradable on Exchange
Tax TreatmentThe Interest on Gold Bonds shall be taxable. The capital gain tax arising on redemption of SGB to an individual has been exempted.
IndexationThe Indexation benefits will be provided to long term capital gains arising to any person on transfer of bond.


Comparison of Physical Gold, Gold ETF  & Sovereign Gold Bond 2017-18 Series I :

Physical GoldGold ETFSovereign Gold Bond
ReturnsLower than Actual Return on goldLower than Actual Return on goldHigher than Actual Return on gold
SafetyRisk on handling physical goldHighHigh
Purity of GoldPurity of gold always remains a questionHigh as it Electronic FormHigh as it Electronic Form
Wealth TaxWealth Tax applicable @ 1% on the total valuation of the asset every yearNot ApplicableNot Applicable
Capital GainLong term Capital Gain Tax applicable after 3 yearsLong term Capital Gain Tax applicable after 3 yearsLong term Capital Gain Tax applicable after 3 years ( No Capital Gain Tax if held till maturity)
Collateral Against LoanYesNoYes
Storage CostHighVery lowVery 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


(Visited 18 times, 1 visits today)