Taxontips
No Result
View All Result
Sunday, May 28, 2023
Login/ Register
  • Home
  • Income Tax
    • Income Tax Return
    • Tax Notice/ Personal consultation
    • Compliance Notice
    • Faceless Assessment
  • GST
    • GST Registration
    • GST Consultation
  • News
    • Income Tax News
    • GST news
    • Budget News
    • Business & Other News
  • Q & A
  • About us
  • Contact us
Talk to an Expert
  • Home
  • Income Tax
    • Income Tax Return
    • Tax Notice/ Personal consultation
    • Compliance Notice
    • Faceless Assessment
  • GST
    • GST Registration
    • GST Consultation
  • News
    • Income Tax News
    • GST news
    • Budget News
    • Business & Other News
  • Q & A
  • About us
  • Contact us
No Result
View All Result
Taxontips
No Result
View All Result

Sovereign Gold Bond Scheme announced by Central government for 2021 | Can you invest in same without having a Demat account

ADMIN by ADMIN
May 19, 2021
in Business & Other News
1
Sovereign Gold Bond Scheme announced by Central government for 2021 | Can you invest in same without having a Demat account
100
SHARES
1.2k
VIEWS
image_pdfPDFimage_printPrint

What is Sovereign Gold Bond (SGB)? Who is the issuer?

SGBs are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. The Bond is issued by Reserve Bank on behalf of Government of India.

Why are Sovereign Gold bond issued?

SGBs are issued with a purpose to reduce purchase of physical gold by people for investment and also to increase saving habit of people and invest in financial saving. Also, this allows government to raise funds from people at a minimum interest rate.

Who is eligible to invest in the SGBs?

Persons resident in India as defined under Foreign Exchange Management Act, 1999 are eligible to invest in SGB. Eligible investors include individuals, HUFs, trusts, universities and charitable institutions. Individual investors with subsequent change in residential status from resident to non-resident may continue to hold SGB till early redemption/maturity.

What is the minimum and maximum limit for investment?

The Bonds are issued in denominations of one gram of gold and in multiples thereof. Minimum investment in the Bond shall be one gram with a maximum limit of subscription 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 per fiscal year (April – March).

What is the return from such sovereign gold bond?

There are two types of return on such bonds:

  1. The Bonds bear interest at the rate of 2.50 per cent (fixed rate) per annum on the amount of initial investment. Interest will be credited semi-annually to the bank account of the investor and the last interest will be payable on maturity along with the principal.
  2. On maturity, the Gold Bonds shall be redeemed in Indian Rupees and the redemption price shall be based on simple average of closing price of gold of 999 purity of previous 3 business days from the date of repayment, published by the India Bullion and Jewelers Association Limited or you can sell them in open market.

What are the tax implications on i) interest and ii) capital gain?

Interest on the Bonds will be taxable as per the provisions of the Income-tax Act, 1961 (43 of 1961).

The capital gains tax arising on redemption of SGB to an individual has been exempted i.e. if you hold the bond for 8 years.

If you sell it before maturity you will have to pay LTCG or STCG depending on your tenure of holding. SGB will be considered as long term if you hold them for more than 3 years and then in case of long term capital gain indexation benefit will also be available.

Is tax deducted at source (TDS) applicable on the bond?

TDS is not applicable on the bond. However, it is the responsibility of the bond holder to comply with the tax laws.

Date of Issue:

The date of issuances of SGB for this series of 2021 shall be as per the details given in the calendar below

S. No. Tranche Date of Subscription Date of Issuance
1. 2021-22 Series I May 17–21, 2021 May 25, 2021
2. 2021-22 Series II May 24–28, 2021 June 01, 2021
3. 2021-22 Series III May 31-June 04, 2021 June 08, 2021
4. 2021-22 Series IV July 12- 16, 2021 July 20, 2021
5. 2021-22 Series V August 09-13, 2021 August 17, 2021
6. 2021-22 Series VI August 30- September 03, 2021 September 07, 2021

For the ongoing series price has been kept at 4777/ gram.

Do remember that a discount of Rs. 50 will be provided if you pay the amount in digital mode online.

How to apply for SGB?

Any person who has a PAN card can apply for these SGB using various modes such as through it’s bank, demat account, broker. Do remember that these bonds are traded on BSE and NSE.

Can one buy sovereign gold bond without demat account?

Although the bonds are traded on stock exchange but one can still buy the bonds without even having a demat account.

As mentioned above one can apply for SGB via Bank or Post office, and you will get a Certificate of Holding on the date of issuance of the SGB. The Certificate of Holding can be collected from the issuing banks/SHCIL offices/Post Offices/Designated stock exchanges/agents.

E-Certificate is also available and obtained directly from RBI on the respective email address provided in the application form.

 

This can be a good option to diversify your portfolio with minimum risk investment if that is what you are looking for as this derives its value based on real gold and we know that in future prices of gold will rise.

image_pdfPDFimage_printPrint
Tags: sovereign gold bond schemesovereign gold bond scheme 2021
Previous Post

Rajasthan High court orders ICAI to release marksheet of CA student which has been withheld due to derogatory remarks

Next Post

Income tax e-filing website to be non functional from 01.06.2021 to 06.06.2021 | New revamped e-filing website from 07.06.2021

Related Posts

RBI to end it’s Fiscal Year 2019-20 on 30.06.2020 | Fact check | Change in Accounting year for 2019-20
Business & Other News

Do you need to panic if you have Rs. 2000 note with you?

May 22, 2023
RBI to end it’s Fiscal Year 2019-20 on 30.06.2020 | Fact check | Change in Accounting year for 2019-20
Business & Other News

Rs. 2000 note removed from Circulation Will continue as Legal Tender

May 19, 2023
ICAI has announced a new MBA programme for Diploma in Management and Business Finance
Business & Other News

Deferment of second phase of Peer Review Mandate for CA Firms

May 15, 2023
IT Department to release all pending income tax refunds up to Rs 5 lakhs immediately
Business & Other News

Notification under PMLA by Ministry of Finance which could affect CA, CS and CMA

May 12, 2023
IT Department to release all pending income tax refunds up to Rs 5 lakhs immediately
Business & Other News

CA, CS and CMA now under PMLA. KYC of clients required

May 10, 2023
Digital signature or Aadhar based e-sign mandatory for IEC after 13.07.2020
Business & Other News

Foreign Trade Policy 2023 announced by ministry of Commerce and Industry

April 20, 2023
Next Post
Income tax e-filing website to be non functional from 01.06.2021 to 06.06.2021 | New revamped e-filing website from 07.06.2021

Income tax e-filing website to be non functional from 01.06.2021 to 06.06.2021 | New revamped e-filing website from 07.06.2021

Comments 1

  1. Pingback: Issuance of calendar for Sovereign Gold Bond Scheme 2021-22 | Tax on Sovereign gold bond (SGB) scheme - Taxontips

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Google Custom search

Recent Posts

  • Instructions for conducting scrutiny of returns for FY 2019-20 onwards under GST [Read instructions]
  • Extension in time limit for filing Form 10A, 10AB, 10BD, 10 etc. in relation to trust under Income tax act
  • GUIDELINES FOR SPECIAL ALL-INDIA DRIVE UNDER GST
  • Government issues guidelines to calculate net winning for section 194BA of the Act [Read circular]
  • Do you need to panic if you have Rs. 2000 note with you?

Recent Comments

  • Notification under PMLA by Ministry of Finance which could affect CA, CS and CMA - Taxontips on CA, CS and CMA now under PMLA. KYC of clients required
  • ADMIN on My Resolved Question
  • ADMIN on My First Question
  • ADMIN on My First Question
  • proxies shared on How to make correction in Income Tax Challan paid?

Categories

  • Budget News
  • Business & Other News
  • Case Laws
  • GST news
  • Income Tax News
  • News

Browse Topics by Date

May 2023
M T W T F S S
1234567
891011121314
15161718192021
22232425262728
293031  
« Apr    

Recent Notification

Annual return optional for F.Y. 2017-18 and 2018-19 for Turnover below Rs. 2 crore

Instructions for conducting scrutiny of returns for FY 2019-20 onwards under GST [Read instructions]

May 27, 2023
Amendment in provisions relating to taxability of income of trust by Finance Act, 2021

Extension in time limit for filing Form 10A, 10AB, 10BD, 10 etc. in relation to trust under Income tax act

May 26, 2023

RSS Taxontips

  • Instructions for conducting scrutiny of returns for FY 2019-20 onwards under GST [Read instructions]
  • Extension in time limit for filing Form 10A, 10AB, 10BD, 10 etc. in relation to trust under Income tax act
  • GUIDELINES FOR SPECIAL ALL-INDIA DRIVE UNDER GST
  • Government issues guidelines to calculate net winning for section 194BA of the Act [Read circular]
  • Do you need to panic if you have Rs. 2000 note with you?
  • CBDT proposes changes to Rule 11UA in respect of ANGEL TAX- Also proposes to notify Excluded Entities
  • Rs. 2000 note removed from Circulation Will continue as Legal Tender
  • International payments through credit card will now attract 20% TCS under Income tax
  • Deferment of second phase of Peer Review Mandate for CA Firms
  • GST revenue collection for April 2023 highest ever at Rs 1.87 lakh crore

Categories

  • Budget News
  • Business & Other News
  • Case Laws
  • GST news
  • Income Tax News
  • News

Site menu

  • Home
  • Income Tax
    • Income Tax Return
    • Tax Notice/ Personal consultation
    • Compliance Notice
    • Faceless Assessment
  • GST
    • GST Registration
    • GST Consultation
  • News
    • Income Tax News
    • GST news
    • Budget News
    • Business & Other News
  • Q & A
  • About us
  • Contact us
Taxontips

TaxOnTips provides you all tax related solutions in easy way and update you with its regular updates & notifications Visit us for details.
We are based in Jaipur, India

© 2019-2023 Taxontips.com - Tax assistance at your Fingertips

No Result
View All Result
  • Login/Signup
  • Income Tax
    • Income Tax Return
    • Tax Notice/ Personal consultation
    • Compliance Notice
    • Faceless Assessment
  • GST
    • GST registration
    • GST Consultation
  • News
    • Income Tax News
    • GST news
    • Budget News
    • Business & Other News
  • Q & A
  • About us
  • Contact us
  • Ask an expert/ Talk to an expert
  • Privacy Policy
  • Terms of use

© 2019-2023 Taxontips.com - Tax assistance at your Fingertips

Book Phone consultation with expert

Sitting home or at your office and don't have time to visit CA's office or don't know where to consult CA. Book your consultation with an expert practicing Chartered Accountant and get your query solved.

Book a phone consultation for 30 minutes with our expert at a very basic cost.

Book consultation

No thanks, I'm not interested!