Sovereign Gold Bond Scheme Opens For Fourth Tranche From July 18, 2016
The Reserve Bank of India (RBI), has decided to issue fourth tranche of Sovereign Gold Bonds. Applications for the bond will be accepted from July 18, 2016 to July 22, 2016. The Bonds will be issued on August 5, 2016.
In Union Budget 2015-16, Finance Minister had announced about developing a financial asset, Sovereign Gold Bond, as an alternative to purchasing metal gold.
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The Bonds will be sold through banks, Stock Holding Corporation of India Limited (SHCIL), designated post offices and recognised stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange.
These bonds will be issued in tranches. Each tranche will be kept open for a period to be notified.
The minimum investment limit is one gram and the maximum is 500 g per person per financial year.
In the first three tranches, the government mobilised Rs 1,320 crore from about 450,000 investors.
The interest on Gold Bonds shall be taxable as per the provision of Income Tax Act, 1961. The capital gains tax arising on redemption of SGB to an individual is exempted. The indexation benefits will be provided to long term capital gains arising to any person on transfer of bond.
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