Another opportunity to invest money in investors’ favorite Sovereign Gold Bond has started from today. Subscription for Sovereign Gold Bond (SGB) 2023-24 Series-4 has started today, Monday 12th February. Subscription for SGB will be open for five days i.e. till 16th February.

This is the last installment of Sovereign Gold Bond during the current financial year. That means, in the financial year 2023-24, the last chance to invest in SGB is from today till 16th February. Under this installment, gold bonds will be issued on 21st February.

According to the Reserve Bank, the issue price for this installment of SGB has been fixed at Rs 6,263 per gram. Investors can buy Sovereign Gold Bond in multiples of one gram. That means it can be purchased in multiples of 1 gram, 2 grams, 3 grams…

An individual investor can buy a maximum of 4 kg of gold in SGB. Even for undivided Hindu families, the upper limit is 4 kg, while trusts can buy 20 kg of gold.

Earlier, the subscription for the third installment of Sovereign Gold Bond Series 2023-24 was opened in December 2023. Subscription for it was opened from 18th December and remained open for subscription till 22nd December. SGB Series-3 was issued on 28 December.

Investors get interest at the rate of 2.50 percent annually on Sovereign Gold Bond. The interest money is credited to the accounts of SGB investors twice a year.

Sovereign Gold Bond was started in the year 2015. It matures in 8 years, but it can be redeemed anytime after a period of 5 years. Tax benefits are available on maturity.

Sovereign Gold Bond can be purchased from any scheduled commercial bank, post office, Stock Holding Corporation of India, Clearing Corporation of India, BSE and NSE.

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This means that they mature only after eight years. But, investors are allowed to withdraw their money before maturity. But, this permission is available only after 5 years. This means that investors have to maintain their investment in these bonds for at least five years. RBI has released the calendar for premature redemption of SGBs.

Investors of these series will be able to redeem

Investors in SGB 2017-18 Series III will be able to redeem their bonds between September 16, 2023 and October 6, 2023. These bonds were issued to investors on October 16, 2017. Investors investing in SGB 2017-18 Series IV will be able to redeem their bonds between September 23, 2023 and October 13, 2023. Investors in SGB 2017-18 Series V will be able to redeem their bonds between September 30, 2023 and October 20, 2023. The bonds of this series were issued to investors on October 30, 2017.

What will be the process?

RBI has said that the mentioned dates may change due to unscheduled holidays. The central bank said that if investors want to redeem their bonds before maturity, then it is important for them to understand the redemption calendar properly.

Sovereign gold bonds are issued by the government. A certificate is issued by the government to the investors investing in it. Investors who wish to redeem their bonds prematurely may contact the concerned Bank/SHCIL Offices/Post Office/Agent Third Party. They will have to do this work before the coupon date.

2.5 percent interest annually

Investment in Sovereign Gold Bond gives 2.5 percent interest annually. This money is deposited in the investor’s bank account every six months. But, this interest income is taxable. But, the profit at the time of redemption is not taxable. The government had introduced Sovereign Gold Bonds to give an option to people investing in physical gold. The minimum investment for an investor is 1 gram. Maximum investment is allowed in 4 kg.

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