RBI’s last chance to buy cheap gold in 2022, guaranteed returns with tax savings

Sovereign Gold Bond Scheme 2022-23 The next installment has opened for subscription for five days today. gold issue price (Sovereign Gold Bond Issue Price) Rs 5,409 per gram has been fixed. reserve Bank of India (Reserve Bank of India) Issues bonds on behalf of the Government of India. The special thing is that this year is the last chance to invest in gold bonds issued by RBI. Then you will get a chance only in March next year. If you also want to invest, then there is a chance for 5 days from today.

Where can you buy SGB?

SGBs can be accessed through scheduled commercial banks (excluding small finance banks, payments banks and regional rural banks), Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), designated post offices and stock exchanges NSE and BSE. Will be sold through.

Discount for online shoppers

The Government of India, in consultation with the Reserve Bank of India, has decided to give a rebate of 50 per gram to investors applying online and making payment through digital mode. According to RBI, the issue price of gold bonds for such investors will be Rs 5,359 per gram of gold.

Next chance to buy SGB

Sovereign Gold Bonds (SGBs) 2022-23 Series IV will open for subscription during March 06-10, 2023.

gold bond tenure

The tenor of the Bonds will be for a period of eight years with an option for premature redemption after the 5th year, the date on which interest will be payable.

Why should you invest in SGB?

According to experts, investing in SGB is considered a better option than investing in physical gold or digital gold. This scheme is supported by the Government of India and regulated by the RBI. Investors get returns at a fixed rate of 2.50 per cent per annum every half year.

Tax on Sovereign Gold Bonds (SGBs)

SGB ​​has different taxation rules. Capital gain from SGB is tax free at the time of maturity. However, investors can prematurely redeem SGBs after five years. If you redeem the SGB between five and eight years, the gain is treated as long term capital gain. It is taxed at 20.8 per cent (including cess) with indexation benefit.

Investors can buy and sell sovereign gold bonds on the stock exchange. If SGBs are sold before three years, the capital gain is added to the income of the investor and taxed based on the applicable income tax slab. Further, capital gains earned by investors on selling SGBs on the stock exchange after three years are long-term and are taxed at 20 per cent along with indexation benefits.