Sovereign Gold Bond: This is a golden opportunity for investment under the scheme announced by the Narendra Modi government. It is a good option in terms of good returns (gold today) and safe investment in gold and silver.
The Modi government has announced a concession of Rs 50 per gram in association with the Reserve Bank of India. This is for investors who buy gold from online media in digital mode. The Government has taken several steps to promote digital payments in the General Budget 2021. Digit payment also provides transparency and helps maintain records.
What is a sovereign gold bond and when does maturity occur?
These are one-way government securities, available in gold per gram. Sleeping at home has many risks. Bonds are a great way to avoid this. There is no need to keep gold in physical form. After buying the bond, you can redeem it in cash at the time of expiration. It is issued by the Reserve Bank of India on behalf of the Government of India. Gold bond matures in 8 years. However, investors can only acquire it after five years.
Who can buy and what is the benefit of a gold bond?
Buying gold through bonds is more profitable in terms of tax. If it is kept to maturity, it will not have a capital gains tax. If you sell bonds before expiration, short-term capital gains are taxed according to your tax slab. Interest on sovereign gold bonds is taxed every year. General newspapers are required to purchase sovereign gold bonds. If you have a voter ID card, Aadhaar card, PAN card or passport, you can buy these bonds. That is, you can invest only through address proof, PAN card and Aadhaar card.
Where to buy bonds and how many grams?
Solar gold bonds can be purchased from the Post Office, Stock Exchange and Stock Holding Corporation. That is, it can also be purchased from the Bombay Stock Exchange and the National Stock Exchange. Any investor can buy gold in one gram or a fraction of it. A person or a Hindu undivided family can buy a four-kg sovereign gold bond in a financial year. Besides retail, qualified investors can buy 20kg of gold in one year.
How much profit do you make and why do you invest?
At the time of redemption of the gold bond, a sum of rupees is present. At closing, the IBJA gives the average closing price of the last three days, accordingly the revenue. It is safer to invest in it in terms of better returns. One, there is no capital gains tax, with interest up to 2.5% per year. The interest amount goes to the investor’s account every six months. When you go to a jewelry dealer and buy gold, the purity and the making charge also increases, which can be avoided.