- Date : 01/03/2023
- Read: 2 mins
These are the premature withdrawal dates for Sovereign Gold Bonds.
The RBI (Reserve Bank of India) has fixed the dates for withdrawing Sovereign Gold Bonds (SGB) prematurely. It released a statement mentioning the SGB tranches details for premature redemption from April 1, 2023, to September 30, 2023. Government securities that are denominated in gold terms are called SGBs. They are considered physical gold substitutes.
Also Read: All you need to know about sovereign gold bonds.
Premature Withdrawal
The tenor of the bond is eight years, and redemption or early encashment from the fifth year (from issuance) is allowed. You can trade it on exchanges if you have maintained the bond in a demat form.
Sovereign Gold Bond Premature Withdrawal
Investors must contact their agent, post office, SHCIL office, or concerned bank before thirty days for early redemption. The premature redemption request will be entertained if the investors contact the relevant authority at least one day earlier.
Tax Rules for the Sovereign Gold Bonds
The bond interest will be taxed according to the Income Tax Act 1961, and no TDS will be applicable. The capital gains tax on its redemption is exempted, and the RBI website states that long-term capital gains will have indexation benefits on bond transfer.
Minimum & Maximum Limit
The SGBs are issued in one-gram denominations and multiples. The minimum investment is one gram, and the maximum limit will be four grams for HUFs and individuals and 20 kg for trusts and other institutions.
Procedure
The upcoming maturity of the bond will be told to the investor a month before its date, and the funds shall be transferred to the bank account mentioned in the records upon maturity. All investors must contact the PO/SHCIL/Bank for any change in details, like an email address or account number.
Also Read: This is what you should know before investing in SGBs.
The Reserve Bank Of India website suggests that the gold quantity for which an investor pays will be protected because they receive the market price at the premature/redemption time. Sovereign Gold Bonds offer a better alternative to physical gold as the storage cost, and risks get eliminated. Investors know the gold's market value upon maturity and the payable interest. It also frees investors from purity and making charges.
The RBI (Reserve Bank of India) has fixed the dates for withdrawing Sovereign Gold Bonds (SGB) prematurely. It released a statement mentioning the SGB tranches details for premature redemption from April 1, 2023, to September 30, 2023. Government securities that are denominated in gold terms are called SGBs. They are considered physical gold substitutes.
Also Read: All you need to know about sovereign gold bonds.
Premature Withdrawal
The tenor of the bond is eight years, and redemption or early encashment from the fifth year (from issuance) is allowed. You can trade it on exchanges if you have maintained the bond in a demat form.
Sovereign Gold Bond Premature Withdrawal
Investors must contact their agent, post office, SHCIL office, or concerned bank before thirty days for early redemption. The premature redemption request will be entertained if the investors contact the relevant authority at least one day earlier.
Tax Rules for the Sovereign Gold Bonds
The bond interest will be taxed according to the Income Tax Act 1961, and no TDS will be applicable. The capital gains tax on its redemption is exempted, and the RBI website states that long-term capital gains will have indexation benefits on bond transfer.
Minimum & Maximum Limit
The SGBs are issued in one-gram denominations and multiples. The minimum investment is one gram, and the maximum limit will be four grams for HUFs and individuals and 20 kg for trusts and other institutions.
Procedure
The upcoming maturity of the bond will be told to the investor a month before its date, and the funds shall be transferred to the bank account mentioned in the records upon maturity. All investors must contact the PO/SHCIL/Bank for any change in details, like an email address or account number.
Also Read: This is what you should know before investing in SGBs.
The Reserve Bank Of India website suggests that the gold quantity for which an investor pays will be protected because they receive the market price at the premature/redemption time. Sovereign Gold Bonds offer a better alternative to physical gold as the storage cost, and risks get eliminated. Investors know the gold's market value upon maturity and the payable interest. It also frees investors from purity and making charges.
