RBI launches third tranche of gold bonds this year
ET Bureau|
Updated: Oct 09, 2017, 08.42 PM IST
RBI will sell gold bonds- third tranche for this year- at Rs. 2956 a gram, the Reserve Bank said in a circular issued to banks on Monday. Online applicants who pay digitally will get Rs 50 discount per gram, it said.
The sale would be open between Monday and Wednesday of every week starting from October 9, to December 27. The 2.5% interest bearing bonds which will be sold to resident Indians- individuals, trusts as well as charitable institutions and universities will be capped for different category of buyers.
Individuals, jointly with another individual or a minor can buy upto four kgs of gold annually, the ceiling for trusts and charities is 20 kgs. The Reserve Bank has clarified that this ceiling will exclude holdings as collateral by banks and other Financial Institutions.
RBI will sell gold bonds- third tranche for this year at Rs. 2,956 a gram, the Reserve Bank said in a circular issued to banks on Monday. Online applicants who pay digitally will get Rs 50 discount per gram, it said
The sale would be open between Monday and Wednesday of every week starting from October 9, to December 27. The 2.5% interest bearing bonds which will be sold to resident Indians- individuals, trusts as well as charitable institutions and universities will be capped for different category of buyers.
The RBI clarified that the interest on the bonds are taxable and bonds shall be repayable on the expiration of eight years from the date of issue of Gold bonds. Pre-mature redemption of the Bond is permitted from fifth year of the date of issue on the interest payment dates.
Interest on the Bonds shall be taxable as per the provisions of the Income-tax Act, 1961. The capital gains tax arising on redemption of SGB to an individual has been exempted. The indexation benefits will be provided to long term capital gains arising to any person on transfer of bond
The sale would be open between Monday and Wednesday of every week starting from October 9, to December 27. The 2.5% interest bearing bonds which will be sold to resident Indians- individuals, trusts as well as charitable institutions and universities will be capped for different category of buyers.
Individuals, jointly with another individual or a minor can buy upto four kgs of gold annually, the ceiling for trusts and charities is 20 kgs. The Reserve Bank has clarified that this ceiling will exclude holdings as collateral by banks and other Financial Institutions.
RBI will sell gold bonds- third tranche for this year at Rs. 2,956 a gram, the Reserve Bank said in a circular issued to banks on Monday. Online applicants who pay digitally will get Rs 50 discount per gram, it said
The sale would be open between Monday and Wednesday of every week starting from October 9, to December 27. The 2.5% interest bearing bonds which will be sold to resident Indians- individuals, trusts as well as charitable institutions and universities will be capped for different category of buyers.
The RBI clarified that the interest on the bonds are taxable and bonds shall be repayable on the expiration of eight years from the date of issue of Gold bonds. Pre-mature redemption of the Bond is permitted from fifth year of the date of issue on the interest payment dates.
Interest on the Bonds shall be taxable as per the provisions of the Income-tax Act, 1961. The capital gains tax arising on redemption of SGB to an individual has been exempted. The indexation benefits will be provided to long term capital gains arising to any person on transfer of bond
