Tripura News Point

Everything You Should Know About the February 12 Opening of the Sovereign Gold Bonds 2023–24 Series IV

<p><strong>Series IV Sovereign Gold Bonds:</strong> The public will be able to subscribe for the Series IV Sovereign Gold Bonds for five days, starting on February 12, 2024, and ending on February 16, 2024. The date of the issue is February 21, 2024.</p>
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<p>In December 2023, subscriptions for the SGB 2023-24 Series III became available.</p>
<p>The finance ministry said in a statement that the SGBs would be sold through designated post offices, designated commercial banks (with the exception of Small Finance Banks, Payment Banks, and Regional Rural Banks), Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), and recognized stock exchanges, namely National Stock Exchange of India Limited and Bombay Stock Exchange Limited.</p>
<p><strong>Who Can Purchase 2023–24 Sovereign Gold Bonds?</strong></p>
<p>The announcement states that the sale of the SGBs, which will be issued by the Reserve Bank of India on behalf of the government, would be limited to residents, trusts, universities, charitable organizations, and Hindu Undivided Families (HUFs).</p>
<p><strong>2023–2024 Sovereign Gold Bonds: Cost, Interest Rate Returns</strong></p>
<p>Payment will be made to the SGB investors semi-annually at a set rate of 2.50% of the nominal value after the investment is issued.</p>
<p>The India Bullion and Jewellers Association Limited (IBJA) will publish the closing price of gold in 999 purity for the previous three working days of the week before to the subscription period. This average will be used to determine the price of SGB in Indian rupees. For investors who subscribe online and pay via digital means, the issue price of the SGBs would be reduced by Rs 50 per gramme.</p>
<p>The SGBs may be paid for using cash (up to a limit of Rs 20,000), demand draft, check, or electronic bank transfer.</p>
<p><strong>2023–2024 Sovereign Gold Bonds: Minimum Investment</strong></p>
<p>One gram of gold will be the minimum acceptable investment, and the maximum subscription limit every fiscal year (April–March), as announced from time to time by the government, will be four kilograms for individuals, four kilograms for HUFs, and twenty kilograms for trusts and similar institutions.</p>
<p>The bonds will have an eight-year duration and be valued in multiples of grams of gold, with one gram serving as the fundamental unit. After the fifth year, there will be an option to redeem the bonds early, which must be exercised on the day that interest is due.</p>
<p>To this end, a self-declaration will be acquired. SGBs subscribed under various tranches and those bought from the secondary market throughout the fiscal year will be included in the yearly ceiling.</p>
<p>The Government Securities Act of 2006 will be used to issue the SGBs as Government of India Stock. A Certificate of Holding will be given to the investors for the same. The government said that the SGBs would be qualified for conversion into demat form.</p>
<p><strong>2023–24 Sovereign Gold Bonds: Redemption</strong></p>
<p>Based on a straightforward average of the closing price of 999-purity gold over the preceding three working days, as reported by IBJA Ltd., the redemption price will be expressed in Indian Rupees.</p>
<p><strong>Can Sovereign Gold Bonds 2023–24 Be Used as Loan Collateral?</strong></p>
<p>Loans may be made with the bonds serving as collateral. According to the finance ministry’s statement, the loan-to-value (LTV) ratio must be fixed at the same level as the standard gold loan that the Reserve Bank sometimes mandates.</p>
<p><strong>Income Tax Applicability for Sovereign Gold Bonds 2023–24</strong></p>
<p>According to the provisions of the Income Tax Act, 1961 (43 of 1961), interest on SGBs would be taxable. Capital gains tax is not applicable when a person redeems their SGBs. Benefits from indexation will be granted to long-term capital gains that arise for any individual upon bond transfer. SGBs will be tradable,” it said.</p>
<p><strong>How can I purchase online Sovereign Gold Bonds (SGBs)?</strong></p>
<p><strong>Step 1:</strong> Open your respective net banking account and log in.</p>
<p><strong>Step 2:</strong> Choose “e-Service” from the main menu, then click on “Sovereign Gold Bond.”</p>
<p><strong>Step 3:</strong> Choose “Register” if you’re a new client. After reading the Reserve Bank of India’s (RBI) terms and conditions, continue.</p>
<p><strong>Step 4:</strong> Depending on where your demat account is housed, provide the necessary SGB scheme data as well as facts on the depository participant from CDSL or NSDL.</p>
<p><strong>Step 5:</strong> Send in the online application for registration.</p>
<p><strong>Step 6:</strong> After registering, click the header link or section and choose “Purchase” as the purchase option.</p>
<p><strong>Step 7:</strong> Provide the nominee’s information and the amount of your subscription.</p>
<p><strong>Step 8:</strong> Enter the one-time password (OTP) that was issued to your registered cellphone number to finish the procedure.</p>