SOVEREIGN GOLD BOND
- WHY INVEST IN GOLD?
- WHY SOVEREIGN GOLD BOND?
- TAX BENEFITS
- MINIMUM AND MAXIMUM INVESTMENT
- OWNERSHIP DOCUMENT
- REGISTER TO MAKE A PURCHASE
WHY INVEST IN GOLD?
Gold is part of our culture. India is the highest importer of gold in the world due to the emotional value attached to holding of gold. Family elders feel secure when there is sufficient holding of gold in the family. Gold is an important part of Bridal gifts to daughter as well as daughter in law. Modern educated women may not want to gold jeweller and prefer diamonds. However holding part of your savings in form of gold BOND is advisable.
WHY SOVEREIGN GOLD BOND?
Physical gold cannot be purchased in low units of one gram each. Physical gold being an item of value has risk of theft. Gold Bond are in your Demat account and safe with depository. Sovereign Gold Bond also give interest hence you have appreciation in price of gold as well as income in form of gold.
Sovereign Gold Bond are guaranteed by Government of India. Gold bond prices are linked to price of gold of 999 purity (24 carat) published by IBJA. Principal as well as interest carry highest guarantee of payment.
Sovereign Gold Bond are for a period of 8 years. Redemption is possible after 5 years. Sovereign Gold Bond are listed on BSE as well as NSE. You will however have to sell at a slight discount from the purchase price depending on demand and supply in the market.
Interest rate is 2.5% as well as appreciation in gold prices if any. Gold ETF as well as physical gold sellers never pay any interest on gold holdings.
No TDS applicable on interest, Capital gain tax exempt on redemption. Indexation benefit if bond is transferred before maturity.
Minimum and Maximum Investment
Minimum investment: 1 gram. Maximum investment: 4 Kgs for individual, 4 Kgs for HUF and 20 Kgs for trust and similar entities per fiscal (April-March).
Holding your Demat statement.