What are Sovereign Gold Bonds?

Sovereign Gold Bonds (SGBs) are Government securities denominated in grams of gold. Issued by Reserve Bank on behalf of Government of India, SGBs offer returns that are directly linked with Gold returns plus offer 2.50% p.a. interest on investment value.

In terms of Pricing, SGBs follow a very transparent pricing* of Gold both during Investment and Maturity and come with the highest purity of Gold denoted by ‘999 purity’.

SGBs are issued in Demat making it a completely hassle-free, secure and a cost effective mode of holding Gold. Not only this, SGBs are Liquid as well as are listed on Stock Exchanges** plus are the most tax efficient^ modes of Gold investing.

Additionally, Collateral facility can also be availed against SGBs.

All this features make SGBs, one of the most prudent forms of investing in Gold. Add Sovereign Gold Bonds to your portfolio now.

SGB SCHEME 2020-21 SERIES XI Issue Price* : To be Notified

Issue Opens-FEBRAURY 01, 2021 Issue Closes-FEBRAURY 05, 2021

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Features & Benefits of Sovereign Gold Bonds

Zero Holding Cost & Risk

Tradeable on Stock Exchanges**

Tenor of 8 years; Option to exit after 5th yr

No TDS on Interest

Securely Held in Demat form

Can be used as Collateral for Loan

Capital Gain Opportunity as Returns are linked to Gold Price

Sovereign Guarantee on Redemption Amount & Interest Payment

No Capital Gain Tax if Held to Maturity

Invest between 1 gram to 4kgs in a financial year

Sovereign Gold Bonds v/s Physical Gold and Gold ETFs

Feature	Sovereign Gold Bonds	Physical Gold	Gold ETF
Fixed Interest	2.50% p.a. payable half-yearly	No Interest	No Interest
Capital Gain Tax	‘0’ Capital Gain tax on redemption^ Interest taxed as per slab	Short Term: Before 3 years, as per marginal slab Long Term: After 3 years, 20% with indexation
Liquidity / Exit option	Can be traded on NSE/BSE** & Redeemed from 5th year	Restrictive	Tradable on stock exchanges
Expenses / Cost	No charges in primary issues & No annual expense	Making charges, Storage cost	Recurring annual expenses
Purity	Highest purity denoted by IBJA as ‘999’	Remains questionable	High as it is Demat form
Safety	High	Risk of theft & wear/tear	High

Sovereign Gold Bonds Upcoming Issues

Tranche	Date of Subscription	Date of Issuance	Issue Price*
2020-21 Series XI	February 01 to February 05, 2021	February 09, 2021	To be Notified
2020-21 Series XII	March 01 to March 05, 2021	March 09, 2021	To be Notified

*Nominal value of the Bonds shall be fixed in Indian Rupees 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 three business days of the week preceding the subscription period. The issue price of the Gold Bonds will be Rs. 50 per gram less than the nominal value to those investors applying online and the payment against the application is paid through digital mode.
^^Annual investment limit of 4 kgs will include the SGBs purchased from the secondary market for Individuals & HUF; 20kgs for Trust and similar entities
^Interest on the Bonds will be taxable as per the provisions of the Income-tax Act, 1961 (43 of 1961). TDS is not applicable on the bond. However, it is the responsibility of the bond holder to comply with the tax laws. The capital gains tax arising on redemption of SGB to an individual has been exempted. The indexation benefits will be provided to long terms capital gains arising to any person on transfer of bond.
** Subject to Liquidity

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Sovereign Gold Bonds