Sovereign Gold Bond 2017-18 Series I
The Government of India launched its Sovereign Gold Bond 2017-18 Series I (SGB) from 24 Apr to 28 Apr. 2018. Issue price for the Sovereign Gold Bond for this tranche has been fixed at Rs. 2,901 per gram.
Issue Details
| Gold Bond | Sovereign Gold Bond 2017-18 Series I |
|---|---|
| Issue Open | 24 April 2017 |
| Issue Close | 28 April 2017 |
| Issuance | Reserve Bank of India on behalf of Govt of India |
| Tenor | 8 Years (Exit option from 5th year) |
| Price Band | Rs. 2,901 per gram |
| Maximum Limit | 500 grams per person per fiscal year (Apr-Mar) |
| Interest Rate | Fixed Rate 2.50% per annum payble semi-annually on the initial value of investment (No TDS) |
| Collateral | Bond can be used as collateral for loans. |
| Tradability (Liquidity) | Bonds will be tradable on Exchange |
| Tax Treatment | The Interest on Gold Bonds shall be taxable. The capital gain tax arising on redemption of SGB to an individual has been exempted. |
| Indexation | The Indexation benefits will be provided to long term capital gains arising to any person on transfer of bond. |
Comparison
Comparision of Physical Gold, Gold ETF & Sovereign Gold Bond 2017-18 Series I :
| Physical Gold | Gold ETF | Sovereign Gold Bond | |
|---|---|---|---|
| Returns | Lower than Actual Return on gold | Lower than Actual Return on gold | Higher than Actual Return on gold |
| Safety | Risk on handling physical gold | High | High |
| Purity of Gold | Purity of gold always remains a question | High as it Electronic Form | High as it Electronic Form |
| Wealth Tax | Wealth Tax applicable @ 1% on the total valuation of the asset every year | Not Applicable | Not Applicable |
| Capital Gain | Long term Capital Gain Tax applicable after 3 years | Long term Capital Gain Tax applicable after 3 years | Long term Capital Gain Tax applicable after 3 years ( No Capital Gain Tax if held till maturity) |
| Collateral Against Loan | Yes | No | Yes |
| Storage Cost | High | Very low | Very low |
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http://www.puneinvest.com/sovereign-gold-bond-2017-18-series/Goldsovereign gold bondThe Government of India launched its Sovereign Gold Bond 2017-18 Series I (SGB) from 24 Apr to 28 Apr. 2018. Issue price for the Sovereign Gold Bond for this tranche has been fixed at Rs. 2,901 per gram. Issue Details Comparison Comparision of Physical Gold, Gold ETF & Sovereign Gold Bond 2017-18 Series...RajendraRAJENDRA TODKARadmin@puneinvest.comAdministratorPuneInvest
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