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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It is not necessary that everyone has the ability to buy gold but still we get happiness when its price falls. It is also considered useful to overcome the financial challenges of the family in future. As an investment option, gold can be offered in the form of coins, bars, jewelry or paper or in the form of gold exchange-traded funds (Gold ETFs), sovereign gold bonds (SGBs) issued by the Reserve Bank of India and gold mutual funds (Gold MFs), etc.

You can buy through. But do you know the maximum amount of gold a person can hold in India? Even though most Indian households buy and own gold, they should be aware of the legal limits on how much gold they can hold. The Gold Control Act was established in our country in the year 1968.

This law prohibited citizens from holding more than a certain amount of gold. However, this act was abolished in 1990. At present there is no restriction on the quantity of gold in India but the holder must have valid source and documents related to gold.

Separate limits for both men and women

TradeSmart President Vijay Singhania told CNBC-TV18.com that guidelines have been framed for Income Tax officials at the time of seizure of property during an income tax raid. According to these instructions, jewelery or jewelery cannot be confiscated to a certain extent on the basis of gender and marital status of the person.

How many ornaments can you hold?

A married woman can keep gold ornaments up to 500 grams and unmarried women up to 250 grams without papers. Whereas for men, the CBDT has fixed a limit of 100 grams for each male member of the family, irrespective of their marital status. To this extent gold cannot be confiscated even during raids by the Income Tax Department.

This means that if you have valid sources and documents available to you to keep gold, then there is no limit for this, but these rules have been made only to relieve the taxpayers from confiscation of their jewelery during raids.

What are the tax rules on gold?

Determination of tax on gold investment depends on the period of holding, ie, the period of holding by the taxpayer. If gold is held for more than 3 years, it is taxable as Long Term Capital Gain (LTCG) at 20 per cent (excluding education cess and surcharge) and short term capital gain as applicable to the investor. Taxable at tax slab. Gold ETFs/Gold MFs are also taxable like physical gold.

Whereas in case of bonds, if they are held till maturity, they are tax-free. However, capital gains are payable on transactions of physical gold or ETFs or Gold MFs. The bonds are traded in demat form on the exchanges and can be redeemed after the fifth year. If the bond is sold before maturity, it is taxable at 20 per cent.

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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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