Should You Invest in Sovereign Gold Bonds 3rd Tranche ? – The government of India has announced the launch of third tranche of its Gold Bond Scheme which will remain open from March 8 to March 14, 2016. Bonds will be issued to subscribers on March 29, 2016. This time the issue price of the Gold Bond has been fixed at Rs 2,916 per gram of gold.
This is issued after the Union Budget 2016-17 where the Finance Minister has announced that the redemption of gold bonds be exempt from capital gains tax, further minister also proposed that the long-term capital gains which is investment of more than three years arising on their transfer will be eligible for indexation benefits.
Read : What is Sovereign Gold Bond Scheme 2015?
Features of Sovereign Gold Bonds 3rd Tranche March 2016
The basic features of the Gold Bond is similar to earlier issued Sovereign Gold Bond except the price and Taxation. Faq on basic criteria and eligibility of Gold Bond subscription are :
Question : Who issues the Gold bonds? :
Solution : Sovereign Gold Bonds are issued by RBI, in both electronic demat and paper form
Question : Who can invest in Gold Bond March 2016 ?
Solution : The bonds can be subscribed by resident Indian , individuals, HUFs, trusts, universities, charitable institutions.
Question : Where to subscribe the Gold Bond ?
Solution : Investors can subscribe to the bonds at any of the bank branches, Stock Holding Corporation of India Limited (SHCIL) and designated post offices.
Question : What are minimum and maximum limit for Purchase of Gold ?
Solution : The Minimum quantity of Gold which may be purchased under this scheme is 2 grams of gold with maximum subscription of 500 grams per person in a financial year.
Question : What are the prospect returns on Gold Bond ? G
Solution : Government has fixed the rate of interest for the year 2015-16 as 2.75% per annum, payable on half-yearly basis. The rate for the Gold bonds is fixed on the basis of simple average of closing price for gold of 999 purity of the previous week published by the India Bullion and Jewellers Association (IBJA).
Question : How Much Do subscribers get on maturity?
Solution : Investor would get the equivalent rupee value at the then prevailing price of gold.
Question : What is the tenure of Subscription of Gold Bond ? T
Solution : he bonds are for a period of 8 years with exit option from 5th year on wards, to be exercised on the interest payment dates.
Question : What are tax benefits on Gold Bond Scheme?
Solution : Exemption from capital gains tax on the Gold bonds. Long-term capital gains is also eligible for indexation benefits.
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Question : Where to Apply for Sovereign Gold Bonds March 2016 ?
Solution : All the Scheduled Commercial Banks and designed Post Offices are authorized to accept applications under Sovereign Gold bond scheme. Visit any of the nearest bank or Post offices between 8th March and 14th March, 2016. The Certificate of the Gold Bond will be start issuing in respected format i.e. gold bond certificates or demat after 29th March, 2016.
Can we withdraw Sovereign Gold-Bonds before maturity period?
Solution : Absolutely Not