The next tranche of Sovereign Gold Bond (SGB) 2023-24 Series IV officially opened for subscription today, Monday, 12 February 2024. For those who are new or do not know much about it, the gold bonds are released by the Reserve Bank of India (RBI). The government has formally announced that people applying for the Sovereign Gold Bond online will receive a discount. One should note that the subscription has opened today so they should complete the process soon.
Interested people should note that the Sovereign Gold Bond (SGB) 2023-24 Series IV subscription will remain open till Friday, 16 February. The subscription will be open till the last date provided the central government does not close the scheme before. The date of issuance of the SGBs is set to take place on 21 February, as per the latest details.
Here is everything you must note about the Sovereign Gold Bond (SGB) 2023-24 Series IV if you want to subscribe online or offline. Read till the end to know the issue price, discounts, taxation, and other important updates.
Sovereign Gold Bond (SGB) 2024 Series IV: Issue Price and Online Discount Rates
According to the latest official details, the Reserve Bank of India (RBI) has set the issue price of the Sovereign Gold Bond (SGB) 2024 Series IV at Rs 6,263 per gram.
It is important to note that those who are applying online or making payments through digital portals will receive a discount of Rs 50 per gram. One should note that the discount will reduce the issue price to Rs 6,213 per gram of gold for online investors.
You can make the payment online if you want to take advantage of the discount introduced by the RBI.
Sovereign Gold Bond (SGB) 2024 Series IV: Taxation and How To Calculate Interest
The Sovereign Gold Bond Scheme (SGB) has a tenor of about eight years. However, one should note that there is an option of premature redemption after five years.
Buyers should pay an interest rate of 2.50 percent per annum and it is completely taxable. The profits earned on redemption are tax-free.
To calculate the interest on Sovereign Gold Bonds or SGB, you should understand that if the price of one unit of SGB is Rs 6000 and the rate of interest is 2.5 percent, the interest will be Rs 150.
Therefore, Rs 150 per year multiplied by 8 years is Rs 1200. Once the bond matures, you will receive the value of gold at current market prices and all of this will be tax-free.
Sovereign Gold Bond (SGB) 2024: What Is the Minimum Investment?
Interested investors can begin with a minimum investment of 1 gram and reach up to a maximum of 4 kg. The know-your-customer (KYC) rules are the same for SGBs as those for purchasing physical gold.