New Tranch Of Sovereign Gold Bonds Will Go Live Today! How To Avail SGB For A Discount?

The RBI has launched the 2023-24 Series IV Sovereign Gold Bonds, available from Feb 12 at Rs 6,263 per gram. Investors can buy until Friday, and online applications with digital payments get a Rs 50 per gram discount. Tax exemptions on redemption gains apply only to individual subscribers.
New Tranch Of Sovereign Gold Bonds Will Go Live Today! How To Avail SGB For A Discount?

The Reserve Bank of India (RBI) has started the latest round of Sovereign Gold Bonds (SGB) for this year, called the 2023-24 Series IV, available from today, February 12. Each gram of gold in these bonds is priced at Rs 6,263. People can sign up to buy these bonds until Friday, but the government might close the window earlier if they decide to, with a warning beforehand. These gold bonds will be officially given out on February 21.

Read More: How To Buy Sovereign Gold Bonds Online?

SGBs offer an eight-year tenure, with an early redemption option available after five years. The bonds attract an annual interest rate of 2.50%, which is taxable according to existing laws. 

However, the gains from the redemption of these bonds are exempt from tax for individual investors. This tax exemption does not extend to other entities permitted to invest in SGBs. It’s important to note that this tax benefit on redemption applies solely to individual subscribers, whether they are original subscribers or have purchased the bonds on the secondary market.

In the event that the bonds are sold or transferred, the resulting profits are subject to taxation as either long-term or short-term capital gains, depending on the duration of the bond holding.

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The RBI also offers an incentive for digital transactions. Investors who apply online and pay digitally will benefit from a discount of Rs 50 per gram, reducing the issue price to Rs 6,213 per gram. The sale of SGBs will be conducted through various channels, including scheduled commercial banks, post offices, and recognized stock exchanges.

You can avail this discount by applying for SGBs through Alice Blue in 15 minutes. Click here now!

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