India's Sovereign Gold Bond Scheme 2023–24, first tranche to open on June 19

In the first half of the current fiscal year, the government has chosen to issue two tranches of sovereign gold bonds (SGBs). The Reserve Bank of India (RBI) said in a statement that the subscription period for the 2023–24 Series I will be from June 19–23, 2023, and the Series II will be from September 11–15, 2023. Series I issuance date is June 17, while Series II issue date is September 20, as per a RBI notification.

SGBs will be sold through designated post offices, recognised stock exchanges, National Stock Exchange Limited and Bombay Stock Exchange Limited, Scheduled Commercial banks (with the exception of Small Finance Banks, Payment Banks, and Regional Rural Banks), Stock Holding Corporation of India Limited (SHCIL), and Stock Holding Corporation of India Limited (CCIL).

Here's all you need to know about Sovereign Gold Bonds:

Eligibility

Only residents, HUFs, Trusts, Universities, and Charitable Institutions are permitted to purchase SGBs.

Tenor

SGBs have an eight-year tenor with an early redemption option after the fifth year that must be taken on the date when interest is due.

Investing limit

One gram of gold is the smallest investment that is allowed. The maximum limit is 4 kgs per year for individuals, 4 kgs per year for HUF, and 20 kgs per year for trusts and similar businesses.

At the time of submitting a subscription application, investors will be asked to make a self-declaration to this effect.

Issue cost

The price of SGB shall be determined in Indian rupees using the average closing price of gold for the last three working days of the week prior to the start of the subscription period, as announced by the India Bullion and Jewellers Association Limited (IBJA).

For investors who subscribe online and make payment in digital form, the issue price of the SGBs would be reduced by ₹50 per gram.

Interest rate

The investors will be compensated at a fixed rate of 2.50% per annum payable semi-annually on the nominal value.

Tax Treatment

No capital gains tax is levied on maturity. The interest you get on your SGBs are taxable as per your income tax slab.
Indexation benefits will also be provided for long-term capital gains that a person gets while transferring the SGB.