Winning Bizness Desk

Mumbai. The government and the Reserve Bank of India (RBI) are going to give people two new opportunities to invest in Sovereign Gold Bonds (SGB) in this financial year 2023-24. The first chance to invest would be from June 19 to June 23 and the second chance would be from September 11 to September 15. This means that people can buy these special bonds during these special periods to invest in gold. Gold bonds can be purchased by various types of people or organizations such as trusts, HUFs (Hindu Undivided Families), charitable institutions, universities, or individuals resident in India. They can buy bonds for themselves, on behalf of the child, or together with others.

Need to fill up a form

If someone wants to buy gold bonds, they have to go to the receiving office and fill up a form (called Form 'A') or a similar form. In the form, they have to tell how many grams of gold they want to buy, their full name and address. They also have to provide certain documents and information sought in the instructions of the form. They will also have to provide their PAN along with the application. Gold Bonds are issued by certain banks (except Small Finance Banks, Payment Banks and Regional Rural Banks), Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), Post Offices and recognized stock exchanges like National Stock Exchange of India Ltd. and will be sold by the Bombay Stock Exchange Ltd.

Investors will get taxable interest

If someone buys gold bonds, they will get interest on the money invested. The interest rate has been fixed at 2.50 per cent per annum. They will be paid interest twice a year. The final payment of interest along with the principal amount invested by them will be made on maturity or maturity of the bond. The interest you earn from gold bonds is taxed as per the Income Tax Act of 1961. However, if you sell the bond and make a profit, you do not have to pay capital gains tax on it. This means that any extra money you make when you sell the bond is not taxed.

Can be transferred from one person to another

If you hold the bond for a long time and then sell it, you can also get some benefit to adjust the tax based on inflation, which can help in reducing the tax amount. Gold bonds that are issued in the form of stock certificates can also be transferred from one person to another. This transfer is done by filling a special document called “Instrument of Transfer” in a specific format called Form “F”.It's like when you want to give a bond to someone else, you have to fill out a paper that says you're transferring it to them. This helps ensure that the transfer is recorded and legally recognized.