Sovereign Gold Bond 4th Tranche Financial Year 2016-17 (Series-I)

Available online for Account Holders of NEVE BANK.

Sovereign Gold Bond 4th Tranche
Financial Year 2016-17 (Series-I)
Salient Features:

Sl. No.	Feature	Product features for previous three tranches	Features for the New tranche (FY 2016-17)
1	Minimum Subscription	Two grams	One grams
2	Maximum Subscription	500 grams (per fiscal year)	Same as previous tranche
3	Denomination of Bonds	The bonds are in denomination of 2, 5, 10, 50, 100 grams of gold or other denominations.	The bonds are in denomination of 1, 2, 5, 10, 50, 100 grams of gold or other denominations.
4	Interest	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.	Same as previous tranche
5	form of issue of Gold Bonds	The Bonds will be available in certificate of holding	The Bonds will be available both in De-mat and certificate of holding
6	Redemption Price of the Bond	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
7	Period of subscription	Three tranche has been released in FY 2015-16 (i.e. November, January and March 2016)	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	Premature redemption facility	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;	Same as before
9	Receiving Offices	Scheduled commercial banks, Stock Holding Corporation of India Ltd (SHCIL), designated post offices.	BSE and NSE are included as receiving offices, apart from the commercial banks, SHCIL, designated post offices .
10	Commission for distribution	Paid at the rate of rupee one per hundred of the total subscription received by the receiving offices.	The existing commission at one percent has been retained for 4th tranche.
11	Tax Benefits	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.	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.
12	Tradability	The Gold Bonds shall be eligible for trading from such date as may be notified by the Reserve Bank of India.	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.