As per GoI notification F.No.4(5)-B(W&M)/2021 and RBI press release dated May 12, 2021, the Sovereign Gold Bond Scheme 2021-22 – Series V will be open for subscription for the period from August 09 – 13, 2021.
Purchase Value: The nominal value of the bond based on the simple average closing price [published by the India Bullion and Jewellers Association Ltd (IBJA)] for gold of 999 purity of the last three business days of the week preceding the subscription period, i.e. August 04, August 05 and August 06, 2021 works out to ₹4,790/- (Rupees four thousand seven hundred and ninety only) per gram of gold.
Discount on online Payment: Government of India, in consultation with the Reserve Bank of India, has decided to offer a discount of ₹50/- per gram less than the nominal value to those investors applying online and the payment against the application is made through digital mode. For such investors, the issue price of Gold Bond will be ₹4,740/- (Rupees four thousand seven hundred and forty only) per gram of gold.
Eligibility: The Gold Bonds under this Scheme may be held by a Trust, HUFs, Charitable Institution, University or by a person resident in India, being an individual, in his capacity as such individual, or on behalf of minor child, or jointly with any other individual.
Interest Rate:
(i) The interest on the Gold Bonds shall commence from the date of issue and shall be paid at a fixed rate of 2.50 percent per annum on the nominal value of the bond. (ii) The interest shall be payable in half-yearly rests and the last interest shall be payable along with the principal on maturity.
Payment Options:
(i) All payments for Gold Bonds shall be accepted in Indian Rupees through cash (upto a maximum of 20,000/-) or demand draft, or cheque, or electronic banking.
(ii) Where payment is made through cheque or demand draft, the same shall be drawn in favour of the receiving office.
Redemption:
(i) The Gold Bonds shall be repayable on the expiration of eight years from the date of the issue of the Bonds:
Provided that premature redemption of Gold Bonds may be permitted after fifth year from the date of issue of Bonds and such repayments will be made on next interest payment date.
(ii) On maturity, the Gold Bonds shall be redeemed in Indian Rupees and the redemption price shall be based on simple average of closing price of gold of 999 purity of previous 3 working days, published by the India Bullion and Jewelers Association Limited.
(iii) The RBI / depository shall inform the investor one month in advance, about the date of maturity of the Bond.
Tax Treatment:
(i) Interest: The interest on the Gold Bond shall be taxable as per the provisions of the Income-Tax Act, 1961 (43 of 1961).
(ii) Capital Gain on Redemption: The capital gains tax arising on redemption of these bonds to an individual is exempted.
(ii) Capital Gain on Transfer: The indexation benefits will be provided to long-term capital gains arising to any person on transfer of bond.
Transfer of Gold Bonds:
The Gold Bonds issued in the form of Stock Certificate are transferable by execution of an Instrument of transfer as in Form ‘F’, in accordance with the provisions of the Government Securities Act, 2006 (38 of 2006) and the Government Securities Regulations, 2007, published in part III, Section 4 of the Gazette of India dated the 1st December 2007.
Trading of Gold Bonds:
The Gold Bonds shall be eligible for trading from such date as may be notified by the Reserve Bank of India.