“The Sovereign Gold Bond Series IV 2023-24 Subscription Opens from February 12 to February 16, 2024”
The government plans to release two sets of sovereign gold bonds (SGBs) soon. The subscription window for the 2023-24 Series III is set from December 18 to 22, 2023, while Series IV is scheduled between February 12 and 16. These bonds are issued by the Reserve Bank on behalf of the Government of India.
Subscription Period for Series IV 2023-24: February 12th to February 16th, 2024
Issuance Date: February 21st, 2024
1) Sovereign Gold Bonds (SGBs) will be available for purchase through banks, stock exchanges, designated post offices, and specific corporations but won’t be accessible via Small Finance Banks, Payment Banks, or Regional Rural Banks.
2) These bonds are open for purchase by resident individuals, Hindu Undivided Families (HUFs), Trusts, Universities, and Charitable Institutions.
3) SGBs are available in units of grams of gold, with the minimum denomination being one gram.
4) The bond’s duration is eight years, with an option for premature redemption after the 5th year, subject to the interest payment date.
5) Individuals can subscribe up to 4 Kg, HUFs up to 4 Kg, and trusts or similar entities up to 20 Kg annually. This limit encompasses subscriptions across various tranches within the fiscal year.
6) The pricing of SGBs in Indian Rupees is based on the average closing price of 999 purity gold, determined by IBJA in the preceding three working days of the subscription period. Online subscribers paying digitally enjoy a discount of ₹50 per gram.
7) Investors will receive a Certificate of Holding, and SGBs can be converted into demat form.
8) Investors will earn a fixed interest rate of 2.50% per annum, paid semi-annually on the nominal value.
9) Taxation on SGB interest follows the Income Tax Act, 1961. Capital gains tax on SGB redemption is exempted for individuals, with indexation benefits for long-term gains.
10) KYC requirements for SGB purchases mirror those for physical gold, necessitating documents like Voter ID, Aadhaar card/PAN, or TAN/Passport, with a mandatory inclusion of the PAN Number issued by the Income Tax Department in each application.