TMI BlogSovereign Gold Bond Scheme 2022-23X X X X Extracts X X X X X X X X Extracts X X X X ..... Sovereign Gold Bond Scheme 2022-23 - News and Press Release Dated:- 16-6-2022 - News - The Government of India, in consultation with the Reserve Bank of India, has decided to issue Sovereign Gold Bonds in tranches as per the calendar specified below: S. No. Tranche Date of Subscription Date of Issuance 1. 2022-23- Series I June 20- June 24, 2022 June 28, 2022 2. 2022-23 Series II August 22 August 26, 2022 August 30, 2022 The Sovereign Gold Bonds (SGBs) will be sold through Scheduled Commercial banks(except Sm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all Finance Banks and Payment Banks), Stock Holding Corporation of India Limited (SHCIL),Clearing Corporation of India Limited (CCIL), designated post offices, and recognised stock exchanges viz ., National Stock Exchange of India Limited and Bombay Stock Exchange Limited.The features of the Bond are as under: Sl. No. Item Details 1 Product name Sovereign Gold Bond Scheme 2022-23 2 Issuance To be issued by Reserve Bank of India on behalf of the Government of India. 3 Eligibility The SGBs will be restricted for sale to residen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t individuals, HUFs, Trusts, Universities and Charitable Institutions. 4 Denomination The SGBs will be denominated in multiples of gram(s) of gold with a basic unit of one gram. 5 Tenor The tenor of the SGB will be for a period of eight years with an option of premature redemption after 5 th year to be exercised on the date on which interest is payable. 6 Minimum size Minimum permissible investment will be One gram of gold. 7 Maximum limit The maximum limit of subscription shall be 4 KG forindividual, 4 Kg for HUF and 20 Kg for tru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sts andsimilarentities per fiscal year (April-March) notified by the Governmentfrom time to time. A self-declaration to this effect will beobtained. The annual ceiling will include SGBs subscribed under different tranches, and those purchased from the SecondaryMarket, during the fiscal year. 8 Joint holder In case of joint holding, the investment limit of 4 KG will be applied to the first applicant only. 9 Issue price Price of SGB will be fixed in Indian Rupees on the basis of simple average of closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Limited (IBJA) for the last three working days of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the week preceding the subscription period. The issue price of the SGBs will be less by ₹ 50 per gram for the investors who subscribe online and pay through digital mode. 10 Payment option Payment for the SGBs will be through cash payment (upto a maximum of ₹ 20,000) or demand draft or cheque or electronic banking. 11 Issuance form The SGBs will be issued as Government of India Stock under Government Securities Act, 2006. The investors will be issued a Certificate of Holding for the same. The SGBs will be eligible for conversion into demat form. 12 Redemption price ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The redemption price will be in Indian Rupees based on simple average of closing price of gold of 999 purity, of previous three working days published by IBJA Ltd. 13 Sales channel SGBs will be sold through Commercial banks, Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), designated post offices (as may be notified) and recognised stock exchanges viz ., National Stock Exchange of India Limited and Bombay Stock Exchange Limited, either directly or through agents. 14 Interest rate The investors will be compensated at a fixed rate of 2.50 percent per annum payable semi-annually on the nom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inal value. 15 Collateral Bonds can be used as collateral for loans. The loan-to-value (LTV) ratio is to be set equal to ordinary gold loan mandated by the Reserve Bank from time to time. 16 KYC documentation Know-your-customer (KYC) norms will be the same as that for purchase of physical gold. KYC documents such as Voter ID, Aadhaar card/PAN or TAN /Passport will be required. Every application must be accompanied by the PAN Number issued by the Income Tax Department to individuals and other entities. 17 Tax treatment The interest on SGBs shall be taxable as per the provision of In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come Tax Act, 1961 (43 of 1961) . The capital gains tax arising on redemption of SGB to an individual is exempted. The indexation benefits will be provided to long term capital gains arising to any person on transfer of bond. 18 Tradability SGBs shall be eligible for trading. 19 SLR eligibility SGBs acquired by the banks through the process of invoking lien/hypothecation/pledge alone, shall be counted towards Statutory Liquidity Ratio. 20 Commission Commission for distribution of the bond shall be paid at the rate of one percent of the total subscription received by the receiving off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ices and receiving offices shall share at least 50 percent of the commission so received with the agents or sub agents for the business procured through them. - News - Press release - PIB Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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