Fifth tranche of sovereign gold bonds scheme to open on Sept 1
30/08/2016 12:51
“Applications for the bond will be accepted from September 01, 2016 to September 09, 2016” RBI said in a notification.
The Bonds will be issued on September 23, 2016, it said.
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.
The gold bonds investor will be compensated at a fixed interest rate of 2.75 per cent per annum payable semi-annually on the initial value of investment, which will be taxable as per the provision of Income Tax Act, 1961 (43 of 1961).
The capital gains tax arising on redemption of Sovereign gold bond to an individual has been exempted. The indexation benefits will be provided to long term capital gains arising to any person on transfer of bond.
Eligibility wise, the bonds will be restricted for sale to resident Indian entities including individuals, HUFs, Trusts, Universities and Charitable Institutions.
It will be denominated in multiples of gram(s) of gold with a basic unit of 1 gram.
The tenure of the Bond will be for a period of 8 years with exit option from 5th year to be exercised on the interest payment dates.
