Sovereign Gold Bonds (SGB) FY 23-24, Series II (Tranche 65) issue revi

Published on Monday, September 11, 2023 by Dilip Davda | Modified on Monday, December 18, 2023

• For FY 23-24, RBI has scheduled just two series of SGB.
• SGB Series I for FY23-24 came in June, 2023.
• For SGB FY24 Series-II, RBI has fixed a price of Rs. 5923 per one gram.
• The online applicants will be eligible for an upfront discount of Rs. 50 per gram.
• Investment for the long term may be considered.

Reserve Bank of India had scheduled its SGB (Sovereign Gold Bonds) plans for the financial year 2023-24., in June 2023. As per the announcement made by RBI on September 08, 2023, FY23-24 Series II SGB (Tranche-65) is opening on September 11, 2023, and will close on September 15, 2023, and tentative date of allotment will be September 20, 2023.

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 grams (in units) 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 Banks, designated Post Offices, Stock Holding Corporation of India Ltd, Clearing Corporation of India Ltd, and recognized stock exchanges, viz. National Stock Exchange of India Ltd and Bombay Stock Exchange Ltd is the Receiving Offices that are authorized to receive applications for the Bonds either directly or through agents and render all services to the customers. The Receiving Office shall issue an acknowledgment receipt in Form B to the applicant.

The issue price of the SGBs will be less than Rs 50 per gram for the investors who subscribe online and pay through digital mode. An interest rate of 2.5 percent per annum will be paid semi-annually to the investors.

For SGB 2023-24, Series II, RBI has announced a price of Rs. 5923.00 per gram. Investors applying online are eligible for an upfront discount of Rs. 50 per gram and they have to pay Rs. 5873 per gram.

The maximum limit of subscription is 4 Kg for individuals, 4 Kg for HUFs, and 20 Kg for trusts and similar entities per fiscal year.

The tenor of the SGB will be for a period of eight years with an option of premature redemption after 5th year to be exercised on the date on which interest is payable.

The interest on the Gold Bond is taxable under the rules of the Income-tax Act of 1961 (43 of 1961). The capital gains tax on redemption of these bonds to a person is waived. Long-term capital gains deriving from the transfer of a bond will be eligible for indexation benefits.

CONCLUSION:

For investors looking for a long-term investment in bullion, this is the best option for them as they will get half yearly interest at 2.50% p.a. on their investment amount. They will get an option for early redemption after 5 years. In recent years, with the rising gold prices, SGB has emerged as the best investment option for bullion investors. (Apply).