Sovereign Gold Bond Scheme 2023 24 Series III, How To Apply, Price, Issue Date, Read All Details..

Sovereign Gold Bond Scheme 2023 24 Series III

The Reserve Bank of India (RBI) revealed the Sovereign Gold Bond Scheme 2023 24 Series III schedule for the fiscal year 2023-2024, which is set to commence on December 18 and conclude on December 22. The RBI has established the issue price for SGBs 2023-24 Series III at Rs 6,199 per gram, with a discount of Rs 50 per gram accessible for online subscribers.

What is Sovereign Gold Bond Scheme

Launched by the Government of India in November 2015 under the Gold Monetisation Scheme, the Sovereign Gold Bond (SGB) Scheme has emerged as a popular investment avenue. Governed by the Reserve Bank of India (RBI) in consultation with the Government of India (GOI), the scheme offers a unique opportunity for investors to participate in the gold market without the need for physical possession.

Sovereign Gold Bonds are government securities denominated in grams of gold. Acting as substitutes for physical gold, these bonds are issued in tranches by the RBI, with terms and conditions regularly updated by the central bank. The rate of the SGB is declared by the RBI before each new tranche through an official Press Release.

Investors, both individuals and institutions, pay the issue price in cash, and upon maturity, the bonds are redeemed in cash. This setup allows for seamless participation in the gold market without the challenges associated with physical storage and security.

Advantages of Sovereign Gold Bond Scheme

Sovereign Gold Bonds come with a host of advantages, making them an attractive investment option.

Firstly, being in demat form eliminates the need for physical paperwork, offering a modern and convenient approach.

Secondly, these bonds represent actual units of gold, providing investors with the benefits of gold price escalation. As gold prices rise due to international demand or fluctuations in currency exchange rates, investors stand to gain.

Another significant advantage is the ability to pledge Sovereign Gold Bonds as collateral for loans, enhancing their liquidity. Furthermore, capital gains from the final sale of the bonds are exempt from taxes, offering a tax-efficient investment avenue. Adding to the attractiveness is the 2.5% interest provided by the government, offering a unique combination of capital appreciation and periodic returns.

Who Can Invest in Sovereign Gold Bond Scheme

Persons resident in India, as defined under the Foreign Exchange Management Act, 1999, are eligible to invest in Sovereign Gold Bond Scheme. This includes individuals, Hindu Undivided Families (HUFs), trusts, universities, and charitable institutions. Even if an individual undergoes a change in residential status from resident to non-resident, they can continue to hold SGBs until early redemption or maturity.

Interest Rates on Sovereign Gold Bond

Sovereign Gold Bond scheme offer an annual interest rate of 2.50%, paid semi-annually for the entire eight-year tenure. The returns are linked to the current market price of gold.

Maximum Limit of Sovereign Gold Bond

The value of the bonds is assessed in multiples of grams of gold, with the minimum initial investment being 1 gram. Individual investors have an upper limit of 4 kg of gold, while entities such as trusts and universities can invest up to 20 kg.

Taxes on Sovereign Gold Bond

While Sovereign Gold Bonds do not offer tax deduction benefits for the lump sum deposit under Section 80C of the Income Tax Act, the interest earned is not tax-free. Investors must declare the interest amount under ‘Income from Other Sources’ during tax returns. Capital gains from holding the bonds till maturity, however, are exempt from taxes. Notably, Tax Deducted at Source (TDS) does not apply to Sovereign Gold Bonds.

Price of Sovereign Gold Bond Scheme Series 3

The valuation of these bonds is established by calculating the straightforward average of the closing price of gold with 999 purity, as per India Bullion and Jewellers Association (IBJA).

This average is calculated using the closing prices of gold for the three working days prior to the start of the subscription period.

The RBI has established the issue price for Sovereign Gold Bond Scheme 2023 24 Series III at Rs 6,199 per gram, with a discount of Rs 50 per gram accessible for online subscribers.

Issue Date of Sovereign Gold Bond Scheme 2023 24 Series III

Sovereign Gold Bonds 2023-24 (Series III) will be opened for subscription during the period December 18-22, 2023 with Settlement date December 28, 2023. PIB

How to Apply for Sovereign Gold Bond Series 3

According to the RBI press release, “Subscription for the bonds may be made in the prescribed application form Form A or in any other form as near as thereto, stating clearly the units (in grams) of gold and the full name and address of the applicant. Every application must be accompanied by valid ‘PAN details’ issued by the income tax department to the investor(s). Designated scheduled commercial banks, designated post offices, Stock Holding Corporation of India Ltd., Clearing Corporation of India Ltd. and the recognised stock exchanges, National Stock Exchange of India and Bombay Stock Exchange are the receiving offices which are authorised to receive applications for the Bonds either directly or through agents and render all services to the customers. The Receiving Office shall issue an acknowledgement receipt in Form B to the applicant.”

How to Buy Sovereign Gold Bond Online

Sovereign Gold Bond Scheme 2023 24 Series III: All online applications should be accompanied by the email ID of the investor/s, which should be uploaded on the Ekuber portal of the Reserve Bank of India along with the subscription details, per the RBI press release.

You can also read: