NCD | RBI Bonds | SGB Bonds
Welcome to the realm of gold, a fusion of tradition and innovation, where your financial journey sparkles with brilliance. Gold, cherished for centuries as a safe-haven asset, stands resilient amidst uncertainty, inflation, and market fluctuations. Beyond its timeless allure, gold strategically diversifies portfolios, offering a shield against the ebb and flow of traditional investments like stocks and bonds.
In terms of liquidity, gold reigns supreme, seamlessly transitioning from tangible forms like jewelry to contemporary financial instruments like gold exchange-traded funds (ETFs) and the esteemed Sovereign Gold Bonds (SGBs). This adaptability ensures your investment retains flexibility, catering to your evolving financial needs.
The spotlight shines on Sovereign Gold Bonds, uniquely backed by the Government of India, infusing an extra layer of safety and reliability. Welcome to a space where tradition meets modernity, and your financial horizon gleams with the potential of gold, promising stability, diversification, and government-backed security on your journey towards prosperity
Features of Sovereign Gold Bond Scheme
- “Minimum investment in the Bond shall be one gram with a maximum limit of subscription of 4 kg for individuals, 4 kg for Hindu Undivided Family (HUF) and 20 kg for trusts and similar entities notified by the government from time to time per fiscal year (April – March).”
- The Bonds holder will get interest at the rate of 2.50 per cent (fixed rate) per annum on the amount of initial investment over and above gold price appriciation.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.
- These securities are eligible to be used as collateral for loans from banks, financial Institutions and Non-Banking Financial Companies (NBFC). The Loan to Value ratio will be the same as applicable to ordinary gold loan prescribed by RBI from time to time.
- Interest on the Bonds will be taxable as per the provisions of the Income-tax Act, 1961 (43 of 1961). The capital gains tax arising on redemption of SGB to an individual has been exempted. The indexation benefits will be provided to long terms capital gains arising to any person on transfer of bonds before maturity.
- TDS is not applicable on the bond. However, it is the responsibility of the bond holder to comply with the tax laws.
- In his or her individual capacity, or
- In individual capacity on joint basis, or
- In individual capacity on anyone or survivor basis, or
- On behalf of a minor as father/mother/legal guardian A Hindu Undivided Family
- Minimum ₹ 1000/- and in multiples of ₹ 1000/-.
- No maximum limit on investment
- Floating Rate interest is payable half yearly, And interest rate Will Change in January & July every year, Bond Will always Pay 0.35% higher rate of interest than NSC.
- Tenure: 7 years of the bond from the date of Investments with a special provision for premature withdrwals for Senior Citizen
- 100% risk free investment option
- Income from the bonds is taxable.
- The bonds are not transferable
- Premature Withdrawals : Facility is available to the eligible investors after Lock in period of 4, 5,and 6 years in the age bracket of 80 years and above, between 70 to80 years and 60 to 70 years respectively