The Sovereign Gold Bond (SGB) scheme for the fiscal year 2023-24 started accepting subscriptions on Monday, June 19 and will continue to do so until June 23. The bonds will be issued on June 27.

What are Sovereign Gold Bonds?

These are government securities measured in gold grams. They serve as an alternative to owning physical gold. Investors pay the issue price in cash and receive cash back when the bonds mature.

Where can you buy Sovereign Gold Bonds?

SGBs are available through major commercial banks (excluding small finance banks, payment banks, and regional rural banks), the Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), certain post offices, and recognised stock exchanges.

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What Are Sovereign Gold Bonds Priced at?

The price stands at ₹5,926 per gram of gold. However, investors subscribing online and paying digitally can avail a discount of ₹50.

The India Bullion and Jewellers Association Limited (IBJA) sets the price of SGB, which is based on a simple average of the gold closing price for the three business days before the subscription period.

How can you subscribe?

• Step 1: Start by filling out the prescribed application Form A or a similar form. Be sure to clearly indicate the units of gold you want to buy, expressed in grams.
  
• Step 2: Provide your full name and address in the relevant fields of the form.
  
• Step 3: Include your valid PAN details, issued by the Income Tax Department, with your application.
  
• Step 4: If applying online, accompany your application with your email ID.
  
• Step 5: Upload these details along with your subscription information to RBI’s Ekuber portal.

Be aware that the offices that receive your application have the responsibility to serve you, the investor, and must follow the instructions provided by the central bank.

And that’s it! Now, you’ve successfully applied for your Sovereign Gold Bonds.

Investors receive a fixed interest rate of 2.50% per annum, payable semi-annually. The interest on SGBs is taxable according to the Income Tax Act, of 1961. However, capital gains tax on the redemption of SGB for an individual is exempt. It is also worth noting that indexation benefits apply to long-term capital gains on the transfer of the SGB.

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