Moneycontrol News
The Sovereign Gold Bonds (SGB) scheme 2018-19 has opened for subscription. Investors in the bond have to be persons resident in India, individual, or jointly with any other individual. The bond may also be held by a Trust, HUFs, Charitable Institution and University. You can also avail the bond on behalf of a minor child.
Here are 10 things one should look at while availing Sovereign Gold Bond Scheme 2018-19.
=| The Bonds will be issued in the form of Government of India Stock, further they are eligible for conversion into a de-mat form.
=| The Bonds may be used as collateral for loans.
=| The interest on the bonds will be taxable as per the provisions of the Income-tax Act.
=| The Bonds will bear interest from the date of issue at the rate of 2.5 percent (fixed rate) per annum on the nominal value. Interest will be paid in half-yearly basis and the last interest shall be payable on maturity along with the principal.
=| The denomination of Bonds will be in units of one gram of gold, further which can be increased in multiples. Minimum investment in the Bonds will be one gram with a maximum limit of subscription of 4 kg for individuals, 4 kg for Hindu Undivided Family and 20 kg for trusts.
=| Calendar
=|The issue price of the Gold Bonds will be Rs 50 per gram less than the nominal value to those investors applying online and the payment against the application is made through digital mode.
=| Payment will be accepted in Indian Rupees through cash up to a maximum of Rs 20000 or Demand Drafts or Cheque or through e-banking.
=| The Bonds will be repayable on the expiration of 8 years from the date of issue of the Bonds. Pre-mature redemption of the Bond is permitted from the 5th year of the date of issue on the interest payment dates.
=| The Bonds are transferable which can be executed by filing an Instrument of transfer form.
(With inputs from RBI)
