Sovereign Gold Bond scheme opens for subscription

The subscription period for 2021-22 Series-VII will be of five days starting Monday (25 October 2021).

The settlement date has been set at 2 November 2021. The nominal value of the bond is set at Rs 4,761 per gram of gold.

The Government of India has decided to offer a discount of Rs 50 per gram on the nominal value to those investors applying online and the payment against the application is made through digital mode. For such investors, the issue price of gold bond will be Rs 4,711 per gram of gold.

The minimum limit of subscription for the bonds issued shall be of one gram and maximum limit of subscription per fiscal year shall be of 4 kg for individuals, 4 kg for Hindu Undivided Family (HUF) and 20 kg for trusts and similar entities notified by the government from time to time.

Investors will be compensated at a fixed rate of 2.50% per annum payable semi-annually on the nominal value.

The tenure of the bond will be for eight years with an exit option after the fifth year to be exercised on the next interest payment dates. Bonds will be tradable on stock exchanges.

The interest on the gold bond shall be taxable as per the provisions of the Income-tax Act, 1961 (43 of 1961). The capital gains tax arising on redemption of these bonds to an individual is exempted. The indexation benefits will be provided to long-term capital gains arising to any person on transfer of bond.

The bonds will be sold through Scheduled Commercial banks (except Small Finance Banks and Payment Banks), Stock Holding Corporation of India (SHCIL), Clearing Corporation of India (CCIL), designated post offices, and recognised stock exchanges viz., National Stock Exchange of India and Bombay Stock Exchange.

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