Today is last day to invest in Sovereign Gold Bonds (SGB) 2023-24 Series-IV: 8 important things to know

The Sovereign Gold Bonds (SGB) 2023-24 Series-IV opened for subscription from February 12, 2024, this will be the last tranche of the financial year. The RBI will soon list out new SGB series dates that will be released in the coming financial year.

SGB Series IV 2023-24 issue price

Investors may purchase one-unit SGB (Series IV) 2023-24 for Rs 6,263, which is the price per gram. One unit of SGB equals one gram of gold. The RBI gives a discount of Rs 50 per gram to investors who apply online and pay for their applications digitally.

Also read: Is SGB Series IV 2023-24 issue price highest ever offered?

SGB Series IV 2023-24: What is the interest rate of Sovereign Gold Bond

The interest rate specified by the RBI on the sovereign gold bond is 2.50%. It will be paid semi-annually. These Bonds will pay a set annual interest rate of 2.50% on the initial investment and credited to the bank account of the investor and the last interest will be payable on maturity along with principal.

Note that the investor is required to furnish bank account details at the time of application and the interest will only be directly credited to the bank account.

Also read: What is the interest rate of Sovereign Gold Bond

SGB taxation

Long-term capital gains will be taxed at 20% with an indexation benefit if the SGB is redeemed after the lock-in period of 5 years but before the maturity period of 8 years. Interest earned on SGBs is taxable as income from other sources, whereas TDS does not apply to bonds. Interest on SGBs is taxable under the provisions of the Income Tax Act of 1961. (43 of 1961). The tax on capital gains deriving from the redemption of SGB by an individual is free. Long-term capital gains deriving from the transfer of the SGB will be eligible for indexation advantages.

Sovereign Gold Bonds 2023-24 Series-IV tranche: Limit

There are limits on how much you can buy:

• Individuals can buy up to 4 kg
• Hindu Undivided Families (HUFs) can also buy up to 4 kg
• Trusts and similar groups approved by the government can buy up to 20 kg per year (from April to March).

Sovereign Gold Bond Benefits

Now let us take a look at the benefits of investing in SGBs, as per the ICICI Bank website.

• Hassle free: Ownership of gold without any physical possession (No risks and no cost of storage)
• Tax treatment: The capital gains tax arising on redemption of SGB 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.
• Tradability: Bonds will be tradable on stock exchanges within a fortnight of the issuance on a date as notified by the RBI.
• Transferability: Bonds shall be transferable by execution of an Instrument of transfer in accordance with the provisions of the Government Securities Act.

Also read: Sovereign Gold Bonds 2023-24 Series-IV tranche: Benefits, features of SGB

How and where to buy SGB online

Where to buy SGB

The SGBs will be sold through Scheduled Commercial banks (except Small Finance Banks, Payment Banks and Regional Rural 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.

Also read: 5 ways to invest in SGB 2023-24 Series-IV

Sovereign Gold Bonds 2023-24 - Series IV: When is the last date to invest

This is the final tranche of this fiscal year; the deadline to invest in SGB Series IV 2023-24 is February 16, 2024.
Investors including individuals, HUFs, trusts, universities and charitable institutions are eligible to invest in SGBs. Individual investors with subsequent change in residential status from resident to non-resident may continue to hold SGB till early redemption/maturity

Last chance to invest in SGB for this FY

Sovereign Gold Bonds 2023-24 - Series IV : What is the allotment date of the latest SGB tranche?

SGBs are normally allocated seven days after the subscription ends, so this tranche’s issuance date is February 21, 2024.

The tenor of the bond is 8 years. After 5 years, investors can apply for premature withdrawal. The maximum limit of subscription of 4 kg for individuals, 4 kg for Hindu Undivided Family (HUF) and 20 kg for trusts and similar entities notified by the government from time to time per fiscal year (April – March).

Also read: What is the allotment date of the latest SGB tranche?