Commencing today, the government has introduced the latest series of Sovereign Gold Bonds, marking a lucrative opportunity for investors. Priced at an attractive Rs 6,199 per gram, this offering is available for subscription until December 22nd.
Enthusiasts looking to capitalize on the government-backed gold investment scheme can seize this chance until the closing date. The current rate is notably lower than the market gold price, based on the IBJA published rate. Both online and offline applications for Sovereign Gold Bonds are accepted.
This government-operated scheme provides investors with the chance to invest in 99.9% pure, 24-carat gold, with an added advantage of a fixed annual interest rate of 2.50%. Additionally, participants can opt for a loan against their investment when needed, as the Reserve Bank of India oversees the scheme.
For those investing online with digital payments, a Rs 50 discount per gram is applicable. This means a reduced rate of Rs 6,149 per gram, translating to a discounted price of Rs 61,490 for 10 grams of gold. Investors can subscribe to a minimum of 1 gram and a maximum of 4 kg, with an 8-year maturity period.
Tax implications come into play if bonds are sold before the 8-year maturity period. While no tax is levied upon maturity, a 20.80% tax on profits, as Long Term Capital Gain (LTCG), is applicable if funds are withdrawn after 5 years.
Reflecting on the returns from the first series of Sovereign Gold Bonds, which matured on November 30th, the initial issue price of Rs 2,684 per gram in November 2015 saw a maturity selling price of Rs 6,132 per gram. Investors enjoyed a commendable 128.5% return over the 8-year period. For instance, an investment of Rs 1 lakh in November 2015 would have grown to Rs 2.28 lakh by now, showcasing the potential of this government-backed gold investment avenue.**
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