Sovereign Gold Bond Scheme 2024: Know Interest Rate On SGB, Price And Discount – News18

Sovereign Gold Bond Series IV FY 2023-24: The Reserve Bank of India (RBI) has introduced the opening of the following tranche of Sovereign Gold Bond (SGB) subscriptions, starting February 12, 2024. This Series IV of the Sovereign Gold Bond Scheme 2023-24 might be out there for subscription till February 16, 2024, providing buyers a chance to spend money on gold in a structured method.

Also Read: Sovereign Gold Bond Series IV Online Subscription: Here’s A Step-By-Step Guide To Buy & Get Discount

Issue Details and Discounts:

The situation worth for this tranche has been fastened at Rs 6,263 per gram of gold. However, buyers choosing on-line funds will obtain a reduction of Rs 50 per gram, lowering the efficient situation worth to Rs 6,213. The bonds might be allotted on February 21, 2024, offering buyers with a set window for subscription and allocation.

Interest Rate and Payment Schedule:

One of the important thing sights of Sovereign Gold Bonds is the curiosity they provide. The rate of interest specified by the RBI for these bonds stands at 2.50%. This curiosity is paid semi-yearly, offering buyers with a daily earnings stream. It’s noteworthy that when the scheme was initially launched, the rate of interest was set at 2.75%. The curiosity accrued might be credited on to the investor’s checking account.

Tax Implications:

While Sovereign Gold Bonds provide a dependable funding avenue, it’s important to know their tax implications. The curiosity earned on SGBs is taxable in accordance with the investor’s tax slab, as per the provisions of the Income Tax Act of 1961. Additionally, it’s vital to notice that Sovereign Gold Bonds don’t qualify for tax advantages beneath Section 80C of the Income Tax Act. Therefore, the curiosity earned on these bonds is totally taxable within the palms of the investor.

Secondary Market Trading

Investors typically surprise concerning the implications of promoting their Sovereign Gold Bonds within the secondary market. When buying and selling SGBs within the secondary market, the curiosity is often adjusted proportionately and factored into the value. There exists a standardized course of to make sure a good and clear adjustment, sustaining the integrity of the bond’s worth.

Risks Associated with SGBs:

Like any funding instrument, Sovereign Gold Bonds include their very own set of dangers. The major danger related to SGBs is the potential for capital loss if the market worth of gold declines. However, it’s essential to know that even when the market worth of gold decreases, buyers don’t lose when it comes to the models of gold they initially invested in. This distinction is vital for buyers trying to diversify their portfolios with publicity to gold with out bearing the dangers related to bodily possession.