The central government has introduced various schemes for the people of the country. One of these schemes offers significant returns on investment in gold online, similar to the Sovereign Gold Bond Scheme.
Through this scheme, individuals can buy gold online at a lower price and earn interest. This is considered a better option than physically purchasing and storing gold due to the risks of theft and the additional cost of bank lockers.
The central government launched the Sovereign Gold Bond Scheme, led by Prime Minister Narendra Modi, in 2015.
Under this scheme, individuals can earn interest on gold over time and receive a return on maturity based on the market rate of gold, with guaranteed returns supported by the government and issued by the RBI.
Individuals can buy gold bonds online or offline, with the option to purchase a minimum of one gram and a maximum of four kilograms.
Trusts and universities can buy up to 20 kilograms of gold bonds. The interest rate on these bonds is 2.50 percent, and they have a maturity period of 8 years and the possibility of withdrawal after five years. When purchased online, a discount of Rs. 50 per gram is available.
While the central government previously issued sovereign gold bonds every month, it has reduced the tranches to one per quarter.
Gold bonds can be purchased from banks and post offices, even if one has a demat account. Additionally, they can be bought from stock markets such as NSE or BSE.
Those interested in buying sovereign gold bonds from NSE or BSE can search for the SGB Scrip Code in their demat account and place a buy order.
The bonds will be credited to the demat account one working day after the transaction.
It’s important to know that tax on the income from gold bond investments must be paid upon maturity.
Additionally, there are two ways to exit the scheme: either after five years or by selling the bonds in the secondary market. In both cases, a capital gains tax of 10-20 percent must be paid.