Available online for Account Holders of NEVE BANK.
Sovereign Gold Bond 4th
Tranche
Financial Year 2016-17 (Series-I)
Salient Features:
Financial Year 2016-17 (Series-I)
Salient Features:
Sl. No.
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Feature
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Product features for previous three tranches
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Features for the New tranche (FY 2016-17)
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1
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Minimum Subscription
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Two grams
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One grams
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2
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Maximum Subscription
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500 grams (per fiscal year)
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Same as previous tranche
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3
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Denomination of Bonds
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The bonds are in
denomination of 2, 5, 10, 50, 100 grams of gold or other denominations.
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The bonds are in
denomination of 1, 2, 5, 10, 50, 100 grams of gold or other denominations.
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4
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Interest
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The interest on the Gold
Bonds shall commence from the date of its issue and shall have a fixed rate
of interest i.e. at 2.75 percent per annum on the amount of initial
investment.
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Same as previous tranche
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5
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form of issue of Gold Bonds
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The Bonds will be available
in certificate of holding
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The Bonds will be available
both in De-mat and certificate of holding
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6
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Redemption Price of the
Bond
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Issuance and redemption
price of Bond was fixed in Indian Rupees on the basis of the price of gold of
999 purity of previous week published by the India Bullion and Jewellers
Association Limited.
|
Same as before
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7
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Period of subscription
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Three tranche has been
released in FY 2015-16 (i.e. November, January and March 2016)
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Subscription date for the
4th Tranche has been fixed from 18-22nd July, 2016 and the
Bonds shall be issued on the 5th
August, 2016
|
8
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Premature redemption
facility
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Premature redemption of
Gold Bond may be permitted after fifth year from the date of issue of such
Bond on the date on which interest is payable;
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Same as before
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9
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Receiving Offices
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Scheduled commercial banks,
Stock Holding Corporation of India Ltd (SHCIL), designated post
offices.
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BSE and NSE are included as
receiving offices, apart from the commercial banks, SHCIL, designated post
offices .
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10
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Commission for distribution
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Paid at the rate of rupee
one per hundred of the total subscription received by the receiving offices.
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The existing commission at
one percent has been retained for 4th tranche.
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11
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Tax Benefits
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The interest on the Gold
Bond shall be taxable as per the provisions of the Income-tax Act, 1961 (43
of 1961) and the capital gains tax shall also remain the same as in the case
of physical gold.
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Capital gain tax arising on
redemption of SGB to an individual has been exempted.
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The indexation benefit will
be provided to LTCG arising to any person on transfer of bonds.
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|||
12
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Tradability
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The Gold Bonds shall be
eligible for trading from such date as may be notified by the Reserve Bank of
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The Gold Bonds issued on
November 30, 2015 held in dematerialized form are eligible for trading on the
Stock exchanges recognized by the Government of India w.e.f.
13.06.2016. The date of commencement of trading in respect of Bonds
issued in subsequent tranches will be notified later.
|
- The minimum subscription limit has propose to reduce from 2 gram
to 1 gram with the view to enlarge the subscriber base;
- To make the scheme lucrative the capital gain tax arising on
redemption of SGB to an individual has been exempted;
- The indexation benefit will be provided to LTCG arising to any
person on transfer of bonds;
- Applications can be routed through the De-mat;
- Trading of Gold Bonds has been operationalized and for further
smoothening of this facility NSE and BSEs is inducted in the list of receiving
offices.
