G.S.R. 438(E).––In exercise of the powers conferred by clause (iii) of Section 3 of the Government Securities Act, 2006 (38 of 2006), the Central Government hereby makes the Sovereign Gold Bond Scheme 2023-24
Who can hold these bonds-
The Gold Bonds issued under this Scheme may be held by a Trust, HUFs, Charitable Institution, University or by a person resident in India, being an individual, in his capacity as such individual, or on behalf of minor child, or jointly with any other individual
Minimum and maximum holding-
The bonds will be issued in denominations of one gram of gold or multiples thereof. Provided that the minimum limit of subscription for the Bonds issued shall be of one gram and maximum limit of subscription per fiscal year shall be of four kg for individuals, four kg for Hindu Undivided Family (HUF) and 20 kg for trusts and similar entities notified by the Government from time to time
Nominal value: –
The nominal value of Gold Bonds shall be in Indian Rupees fixed on the basis of simple average of closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Limited, for the last 3 working days of the week preceding the subscription period.
The issue price of the Gold Bonds will be less than the nominal value by ₹50 per gram to those investors applying online and making the payment against the application through digital mode.
(i) The interest on the Gold Bonds shall commence from the date of issue and shall be paid at a fixed rate of 2.50 percent per annum on the nominal value of the bond. (ii) The interest is payable half-yearly and the last interest shall be payable along with the principal on maturity.
Redemption- (i) The Gold Bonds shall be repayable on the expiration of eight years from the date of the issue of the Bonds: www.taxmann.com
Loan against Bonds–
- The Gold Bonds issued under this Scheme may be used as collateral security for availing any loan. Such loans could be granted by marking a lien on Gold Bonds appropriately.
- The Loan to Value ratio as applicable to any ordinary gold loan mandated by the Reserve Bank of India shall also apply to the Bonds issued under this Scheme
The interest received on the Gold Bond shall be taxable as per the provisions of the Income-tax Act, 1961 (43 of 1961). The capital gains tax arising on redemption of these bonds to an individual is exempted.