1. The Bonds are Sovereign guaranteed by the GoI.
2. SGB provides 2.50% interest pa which physical gold investment does not provide.
3. The minimum investment is 1 gm and maximum up to 4 kg.
4. The Bonds are of 8 yrs option of early redemption (Offered by RBI) every 6 months starting from
5 yrs 6 mths onwards.
5. Can be purchased through iMobile/Internet Banking either in Demat mode (soft copy of bonds will be
sent by RBI through email).
6. The bonds can be sold anytime on the stock exchanges and thus offers liquidity when funds are needed.
Why should someone buy SGB rather than physical gold?
1. SGB offers a superior alternative to holding gold in physical form.
2. The risk and cost of storage are eliminated.
3. Investors are assured of the market value of gold at the time of maturity and additional interest of 2.50%
every year.
4. SGB is free from issues like making charges and purity in the case of gold jewellery form.
5. No GST on SGB.
Taxation on SGB
1. Interest is taxable as per tax slabs.
2. Capital Gain arising on redemption of SGB after 8 yrs to an individual is exempted (tax free).
3. Capital Gain tax is applicable if sold on the Stock Exchange before maturity. The indexation benefits
will be provided to long term capital gains arising to any person on transfer of bond.
My take
Some advertisement this!
Tailpiece.
Got up at my usual time, the chores and was ready by a quarter to 10.
Did our packing and proceeded to the Akshaya Kendra near the private bus stand to do two things :-
(a) Amend our Aadhaar cards and
(b) To submit House Tax exemption application on line.
Couldn't do the latter as the system was slow all through.
Shifted to Gokulam Sabari around lunchtime.
Visited The Quarterdeck to assess the progress of work.
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