Government Announces New Tranches for Sovereign Gold Bond Scheme 2023-24 (SGBS)

Key Takeaways:

• SGB Series 2023-24 consists of Series III and Series IV with specific subscription periods and dates of issuance.
• Investors in the 2023-24 series III will be paid at a fixed rate of 2.50 per cent per annum payable semi-annually on the viable value of physical gold.
• SGBs can be purchased through Scheduled Commercial banks, SHCIL, CCIL, designated post offices, and recognized stock exchanges.
• The issue price of the SGBs will be less by ₹50 per gram for the investors who subscribe online and pay through digital mode.
• The maximum subscription limit for the Gold Bond 2023-24 Tranche III each fiscal year must be 4 kg for individuals, 4 kg for HUF, and 20 kg for trusts and similar entities.

Sovereign Gold Bond Scheme (SGBS) 2023-24: Latest Tranche and Issue Details

The Government of India, in consultation with the Reserve Bank of India, has announced the issuance of new Sovereign Gold Bonds (SGBs) in tranche for the Series 2023-24. The SGB Series 2023-24 consists of Series III and Series IV, each with its own subscription period and date of issuance.

SGB Series 2023-24 Details

Here are the details for the upcoming tranches:

How to Buy Sovereign Gold Bonds (SGB) Online

Customers can buy SGBs through the following channels:

• Scheduled Commercial banks (except Small Finance Banks, Payment Banks, and Regional Rural Banks)
• Stock Holding Corporation of India Limited (SHCIL)
• Clearing Corporation of India Limited (CCIL)
• Designated post offices
• Recognized stock exchanges, such as National Stock Exchange of India Limited and Bombay Stock Exchange Limited, will facilitate transactions for the Gold Bond 2023-24 Tranche III.

Sovereign Gold Bond 2023-24 Details

• Denomination: The SGBs will be denominated in gram(s) of gold multiples, with a fundamental unit of one gram.
• Tenor: The tenor of the SGB will be eight years, with an option for premature redemption after the fifth year.
• Minimum Investment: The minimum allowable investment will be one gram of gold.
• Payment Options: SGBs can be paid for in cash (up to a maximum of ₹20,000), demand draft, check, or electronic banking.

Issue Price Calculation

The price of SGB will be fixed in Indian Rupees based on the simple average of the closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Limited (IBJA) for the last three working days of the week preceding the subscription period. The issue price of the SGBs will be less by ₹ 50 per gram for the investors who subscribe online and pay through digital mode.

Interest Rate of 2.50 %

Investors will be paid at a fixed rate of 2.50% per cent per annum payable semi-annually on the viable value of gold.

Tax Treatment

• The interest on SGBs, including the 2023-24 series III, is taxable under the provisions of the Income Tax Act of 1961.
• The capital gains tax on SGB redemption to a person is excluded.
• Long-term capital gains deriving from the transfer of the SGB will be eligible for indexation advantages.

Maximum Subscription Limit

The maximum subscription limit each fiscal year (April-March) must be 4 kg for individuals and HUF, and 20 kg for trusts and similar companies, as specified by the Government from time to time. During the fiscal year, the annual ceiling will comprise SGBs subscribed under multiple tranche as well as those acquired on the secondary market.

FAQ:

Q1: Can the responsibility for paying income tax on gains from a minor child’s investments be split between divorced parents?

A1: No, the responsibility cannot be split. It falls on the parent who maintains the child after the divorce.

Q2: What are the consequences of not paying the necessary tax on the minor child’s income after divorce?

A2: Failure to pay the necessary tax can lead to interest, penal consequences, and liability for penalties under the Income Tax Act.