Invest in RBI Sovereign

Issue Closes on: 14 July (Min Investment: 1 grams I Max Investment: 500 grams)

  • Issue Price

    Price of Bond will be fixed in INR on the basis of the previous week’s simple average of closing price of gold of 999 purity published by IBJA.

  • Interest

    2.50% (Fixed rate) p.a. on the initial investment paid half yearly

  • Tenor / Redemption

    The Bonds shall be repayable on the expiration of 8 years from the date of issue Premature Redemption: From the 5th year of the date of Issue on the interest payment date

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What is SGBs

Sovereign Gold Bonds Scheme (SGBs) are government securities denominated in grams of gold. They are substitutes for holding physical gold Issued by Reserve Bank of India on behalf of the Government of India Investors will get returns linked to gold price. Additionally fixed interest payable semi-annually The Bonds will be issued in tranches. Each tranche will be kept open for a period to be notified. The issuance date will also be specified in the notification The bonds will carry sovereign guarantee both on the capital invested and the interest

Features

Issue Price

Price of Bond will be fixed in INR on the basis of the previous week’s simple average of closing price of gold of 999 purity published by IBJA. RBI will announce the price in advance before the start of issue.

Denomination

The Bonds are denominated in multiples of gram(s) of gold with a basic unit of 1 gram.

Tax Treatment

TDS is not applicable on the interest of the bond Indexation benefit if bond is transferred before maturity Long term capital gain tax is applicable after 3 years. No capital gain on redemption

Tenor

The tenor of the Bond is for a period of 8 years with exit option from 5th year to be exercised on the interest payment dates .

Interest Earned

The interest rate as fixed by the Government of India is 2.75 % on issue price Interest is payable semi-annually Interest on the bonds are taxable

Minimum and Maximum Size

Minimum permissible investment: 2 units (i.e. 2 grams of gold) Maximum permissible investment: Not more than 500 grams per person per fiscal year.

Why invest in Gold bonds

Safest : Digital gold with no requirement of locker and its expenses

Earn Interest: 2.75% assured interest per annum on the investment

Sovereign guarantee : Both on the capital invested and the interest

Traded on Exchange: To allow early exits for investors who may so desire Ease of borrowing loan: Can be used as collateral for loans

Tax benefits: TDS is not applicable on the bond Indexation benefit if bond is transferred before maturity Long term capital gain tax is applicable after 3 years Wealth tax ????

Easy exit option: The tenor of the bond is for a minimum of 8 years with option to exit in 5th, 6th and 7th years

Assurance of purity: Price of Bond will be fixed in INR on the basis of the previous week’s simple average of closing price of gold of 999 purity published by IBJA. RBI will announce the price in advance before the start of issue

No making charges: SGB is free from issues like making charges as in the case of gold in jewellery form

No maintenance charges: Gold bonds are electronically maintained thus no cost of storage and risk of theft

Liquidity: Gold bonds are traded on exchange and thus can be easily bought and sold

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Vishwas Fincap Services Pvt. Ltd.

VISHWAS GROUP was found with the vision and enterprise of Practicing Chartered Accountants, in a modest scale in 1996 in New Delhi.

  • No risk of theft
  • No risk of impurity
  • Minimum cost of holding
  • Delivery in Dmat Account

Address

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Email: info@vishwasfincap.com, Mobile: +91-9212 187 009/004