Today is the first day of subscription for the Sovereign Gold Bond scheme: 10 out of 10

Today, October 25, is the first day of subscription for the next tranche of Sovereign Gold Bonds (SGBs) 2021-22. In India, purchasing gold during the festive season is considered auspicious. So, if you wish to invest for an actual long-term horizon of 8 years and benefit from gold price rise without dealing in physical gold, this is the strategy to use. Mr. Prathamesh Mallya, AVP-Research, Non-Agri Commodities and Currencies, Angel One Ltd, says, "Sovereign Gold Bonds are the finest option to invest in gold in digital form without having to purchase gold in physical form."

Everything you need to know about the Sovereign Gold Bond Scheme

1) Beginning today, the subscription period for 2021-22 Series-VII will be 5 days.

2) The issue price per gram of gold has been set at $4,765.

3) Those who enroll online and pay via digital method will receive a $50 per gram discount on the gold bond issue price.

4) The bonds will be offered through banks, the Stock Holding Corporation of India Limited (SHCIL), the Clearing Corporation of India Limited (CCIL), specified post offices, and recognised stock exchanges (excluding minor finance banks and payment banks) (National Stock Exchange of India and Bombay Stock Exchange).

5) The bond will be issued for an eight-year period, with an option to exit after the fifth year on the next interest payment dates.

6) These bonds are available for purchase on secondary markets.

7) On the nominal value, the investors will be compensated at a predetermined rate of 2.50 percent per year, payable semi-annually.

8) The least amount of gold that can be invested will be 1 gram.

9) The maximum subscription limit each fiscal year is 4 kilograms for people, 4 kg for HUF, and 20 kg for trusts and similar businesses (April-March).

10) There is no capital gains tax on SGBs held to maturity. If the SGBs are sold on the exchanges before the maturity date, capital gains will be taxed at the applicable rates. SGB interest is taxable according to the investor's tax bracket.