Ineligible
- Non Resident Indians
- Foreign Institutions and entities
- Societies and Clubs
- Partnership Firms
- Pvt & Public Limited Companies
Enjoy the benefits of this all-rounder investment with returns on gold plus interest with tax benefits.
Sovereign gold bonds (SGB's) are issued by the Govt of India. They are a superior alternative to buying physical gold
Key Things to be Noted about Gold Bonds
If interested please call us on 1800 419 4332
Sovereign gold bonds(SGB)are a better investment than physical gold because:
If interested please call us on 1800 419 4332
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Sovereign gold bonds (SGB's) are issued by the Govt of India. They are a superior alternative to buying physical gold
Key Things to be Noted about Gold Bonds
If interested please call us on 1800 419 4332
Sovereign gold bonds(SGB)are a better investment than physical gold because:
If interested please call us on 1800 419 4332
The risks are the same as buying physical gold. SGB prices are completely linked to Gold prices. The bonds are issued by the Govt. of India, and carry no risk of default.
All Indian residents are eligible to invest (includes individuals, HUF’s, trusts, corporates, charitable institutions, minors etc). Joint holding of bonds is also allowed
SGB is issued in 1 gram of gold multiples. The minimum investment limit is 1 gram and the maximum is 4 Kgs per investor per financial year
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Upon application, IDFC FIRST Bank shall issue an application number immediately to investor. Additionally, RBI issues certificates to all investors in SGB’s. The same shall be delivered by IDFC FIRST Bank. It usually takes 15-30 days post application for issue of certificates. SGB’s can also be held in demat accounts, if demat details are provided in the application form.
The price of SGB is fixed by the RBI. The issue price of the Sovereign Gold Bond for the 13th Series of FY 17-18 has been fixed at Rs. 2866/- per gram of gold (Discounted by Rs 50/gm to Rs. 2816 for online application). The rate has been fixed on the basis of simple average of closing price for gold of 999 purity of the last 3 business days of the previous week published by the India Bullion and Jewellers Association Ltd. SGB issue dates are December 18, 2017 to December 20, 2017 with settlement on December 26, 2017.
The maximum tenor of the bonds is 8 years. Early redemption is allowed after 5 years and can be done on any coupon payout date (30 day prior notice needs to be given to IDFC FIRST Bank) Additionally, Investors also have the option of selling the bonds anytime on exchanges (NSE/BSE), RBI shall enable the same shortly.
On redemption, the price of SGB shall be calculated basis the price movement of Gold. The same is fixed by the RBI, based on average gold prices a week prior to redemption (price of 999 purity gold as published by IBJA shall be considered by RBI). The funds shall be credited to your bank account as per details provided
The interest received (2.50% every year) is taxable as interest income (as per current income tax rules) In case the bonds are redeemed (after 5 years), no capital gains tax needs to be paid No TDS shall be deducted either during redemption or interest payout. In case the bonds are sold on the exchange, capital gains tax is payable at the same rate as for physical gold. The capital gain rate currently is as below: For short term capital gains (if sold before 3 years): 30% plus applicable surcharges For long term capital gains (if sold after 3 years): 20% plus applicable surcharges, indexation benefit is available. Please note that the above does not constitute tax advice. Please contact your personal tax advisor for tax implication for your circumstances.
Yes, Nomination facility is available. Nominee details can be updated during investment or later.
In case of early redemption (after 5 yrs), the investor needs to submit a signed form to IDFC FIRST Bank branch. The form needs to be submitted 30 days prior to redemption date. On maturity (after 8 years), funds shall be credited automatically to the IDFC FIRST Bank account of the investor. No instructions need to be submitted on maturity.
KRM Tower, 7th Floor, No. 1,
Harrington Road, Chetpet,
Chennai - 600031, Tamil Nadu,
India
Naman Chambers,
C-32, G-Block,
Bandra-Kurla Complex,
Bandra East, Mumbai - 400051,
India
Toll Free No - 1800 419 4332
Email - Banker@idfcfirstbank.com
Toll Free No - 1860 500 9900
Email - Customer.Care@Capitalfirst.Com
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