Sovereign Gold Bond Scheme 2023-24 Series 4:- The Reserve Bank of India issues the Sovereign Gold Bond on behalf of the Indian government. Today is the first day when subscribers can sign up for the upcoming tranche of Sovereign Gold Bonds. On February 12, 2024, subscriptions for the newest Sovereign Gold Bonds (SGB) 2023–24 Series IV will be accepted till February 16, 2024.
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Sovereign Gold Bond Scheme 2023-24 Series 4 opens for subscription
Online discounts are available for subscribers to the Sovereign Gold Bond Scheme.
The RBI stated that investors who apply online and pay online will receive a discount of ₹50 per gram, making the issue price of ₹6,213 after the reduction. Several outlets, including as stock exchanges, post offices, and scheduled commercial banks, will sell the Sovereign Gold Bonds.
Sovereign Gold Bond Scheme 2023-24 Series 4 Details in Highlights
|Sovereign Gold Bond Scheme 2023-24 Series 4
|The Reserve Bank of India
The price of 999 pure (24k) gold, as reported by the India Bullion and Jewellers Association (IBJA), is correlated with SGB prices. When gold prices rise, investors can readily sell their gold bonds on the secondary market since they are liquid assets.
Important Dates regarding SSGB Scheme 2023-24 Series 4
The table below shows the important dates related to the scheme.
|Date of Subscription
|February 12 – February 16, 2024
|Date of Issuance
|February 21, 2024
Sovereign Gold Bond Scheme 2023-24 Series 4 Price
Subscriptions for the Sovereign Gold Bond (SGB) 2023–24, or Series IV, are now being accepted from today, February 12 at ₹6,263 per gram. The government has also declared that online applicants for Sovereign Gold Bonds will receive a little discount.
Sovereign Gold Bond Taxation
This rule for profits made on redemption applies, whether at the end of the original tenure of 8 years or on early redemption which is allowed after 5 years. The eight-year tenor of the Sovereign Gold Bonds includes a five-year early redemption option. Interest is fully taxed and paid at a fixed annual rate of 2.50%. Profits from redemption, however, are completely tax-free. Any profits you receive upon redeeming your Sovereign Gold Bonds are completely tax-free in your possession.
Eligibility for Exemption?
Whether you purchased the SGB via a secondary market or as an initial subscriber, you are still eligible for the exemption. Other businesses that are permitted to invest in SGB are not eligible for this redemption exception, this is exclusively open to individuals.
If the bonds are transferred or sold, the proceeds from the sale are subject to full long-term or short-term taxation, depending on the length of the holding period.
You also have the option to index capital gains or pay a flat tax of 10% of earnings instead. You can also claim an exemption under Section 54F for such long-term capital gains by investing the earnings in a residential property within the allowed time. “SGB has a 12-month holding period to create their long-term capital assets. When calculating the taxable long-term capital gains, you are eligible to claim the indexation advantage if the asset is sold or transferred after a year.
Issue Price of SGB 2023-24 Series IV
The SGB 2023–24 Series IV has an issue price of Rs 6,263. The issue price would be Rs 6,213 after deducting Rs 50 for online payments.
The bond’s nominal value, which is determined by taking the simple average of the closing price for gold of 999 purity from the last three working days of the week before the subscription period (February 07, February 08, and February 09, 2024) and publishing it by the India Bullion and Jewellers Association Ltd (IBJA), comes to Rs 6,263/- (Rupees Six thousand two hundred and sixty-three only) per gram of gold.
After consulting with the Reserve Bank, the Indian government has agreed to give investors who apply online and pay for their applications online a discount of Rs 50/-per gram above the nominal amount. According to a news statement from the RBI “For these investors, the issue price of Gold Bond will be Rs 6,213/- (Rupees Six thousand two hundred and thirteen only) per gram of gold.”
For the present series, the investor receives a set interest rate of 2.5 percent per year, payable semi-annually on the nominal value. The fixed interest generated is unaffected by Gold Bonds’ capital growth.
Investors who register online and make payments using digital methods can receive a discount of Rs 50 from the Reserve Bank of India (RBI). As a result, these investors would pay Rs 6,213 per unit, or one gram of gold, as the issuance price of the gold bonds.
The bond will have an eight-year tenor, with an exit option in the fifth year that can be used on the dates of interest payments. Under the GS Act of 2006, the Government of India Stocks would be used to issue the Gold Bonds. For the same, a Holding Certificate will be given to the investors. It is possible to convert the Bonds into demat form.