Govt. of India - Sovereign Gold Bonds
Invest in Gold at a discount of 500 Rs. per 10 grams, earn 2.5% interest per annum & pay NO capital gains tax.
guaranteed by government of india
Sovereign Gold Bonds are government Guaranteed securities issued by Reserve Bank of India on behalf of the Government of India. They are denominated in grams of gold and can be purchased instead of physical gold & be held in your DEMAT account.
Higher returns than Physical gold
The bonds bear interest at the rate of 2.50 per cent (fixed rate) per annum on the amount of initial investment. Interest will be credited semi-annually to the bank account of the investor and the last interest will be payable on maturity along with the principal.
NO capital gains tax if the investment in SGB is held until maturity (8 years) & NO TDS on interest earnings.
Liquidate easily without costs like making charges levied on physical gold
Can be traded on the exchange like any other stocks / securities.
invest in 1 gram to 20 kgs worth of gold
Minimum investment: 1 gram.
Maximum investment: 4 Kgs for individual, 4 Kgs for HUF and 20 Kgs for trust and similar entities specified by govt.