Sovereign Gold Bond Scheme 2024-25 is a great way for you to invest in gold without holding it physically. The Reserve Bank of India (RBI) has announced early redemptions for 30 series of these bonds maturing between October 2024 and March 2025. RBI has also shared a schedule for bonds that have completed five years to be repurchased.
Next Issue Date of Sovereign Gold Bond Scheme 2024-25
Knowing the next issue date of Sovereign Gold Bonds (SGBs) in 2024-25 helps you plan when to invest. The government announces issue dates each year so you can subscribe during the financial year. These bonds are offered by RBI on behalf of the Government of India, giving you a safe and easy way to invest in gold digitally.
Keeping an eye on issue dates makes sure you don’t miss the chance to buy SGBs at the right time. So, stay updated and be ready to invest smartly in gold this year.
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Overview of the Sovereign Gold Bond Next Issue Date
The upcoming Sovereign Gold Bond issues in 2024-25 are attractive for investors. These bonds offer a fixed interest rate of 2.50% per year, paid every six months, giving you regular income along with potential gold price gains.
Sovereign Gold Bonds have a term of 8 years. You can redeem early after 5 years if you want. The bonds are backed by the Government of India, making them very secure for your money.
These bonds can be traded on stock exchanges, so you can sell before maturity if needed. You can buy in small amounts starting from 1 gram of gold, which suits all kinds of investors.
Also, there are good tax benefits on capital gains if held till maturity, and you can use SGBs as collateral for loans. The new series will continue to offer these benefits.
RBI Bonds Latest Updates
The Sovereign Gold Bond Scheme for 2024-25 comes with some updates to help investors. Now applying online is easier with mobile banking and special apps, saving your time.
Early subscribers using digital platforms may get discounts on the bond price.
The interest rate will stay at 2.50% per year. Some tax rules may be updated to make the scheme more investor-friendly.
The bonds will remain tradable on stock markets, giving you the flexibility to buy and sell anytime. You can check gold prices on official websites to pick the best time to invest.
Who can invest in the Sovereign Gold Bond Scheme?
Eligible investors include Indian residents, Hindu Undivided Families (HUFs), trusts, universities, and charitable institutions. Even if your residence changes abroad, you can hold the bonds till early maturity as allowed under the Foreign Exchange Management Act, 1999.
Main Highlights of Sovereign Gold Bond Scheme 2024-25
| Feature | Details |
|---|---|
| Tenure | 8 years, with option to redeem after 5 years |
| Interest Rate | Fixed 2.50% annual interest, paid twice a year |
| Issue Price | Based on average gold price of previous week |
| Eligibility | Indian residents, HUFs, trusts, universities, charities |
| Tradability | Can be traded on stock exchanges for easy liquidity |
| Minimum Purchase | 1 gram of gold |
| Tax Benefits | Capital gains exempt if held till maturity |
| Collateral | Can be used as loan security |
How to buy Sovereign Gold Bonds online?
- Choose platform: Use an online portal of a bank or stock exchange.
- Login: Use your internet banking ID.
- Provide PAN: PAN card details are needed to apply.
- Select SGB: Pick the current bond issue available.
- Make payment: Pay via net banking or UPI.
- Get confirmation: Receive your bond certificate in your email or demat account after payment.
Sovereign Gold Bond Denomination
Bonds are measured in grams of gold, starting at 1 gram per unit.
Tenor of SGB
Eight years total, with early redemption possible after 5 years on interest dates.
Minimum Investment
One gram of gold is the smallest amount allowed.
Maximum Investment Limit
Individuals and HUFs can invest up to 4 kg per year. Trusts and similar entities can invest up to 20 kg per fiscal year (April to March). This limit includes all purchases under different SGB tranches and secondary market acquisitions.
Benefits of Sovereign Gold Bonds
SGBs remove worries about storing physical gold safely. You get market-linked gold price gains without safety risks. You also control when and at what price you redeem.
Joint Holder Details
The 4 kg limit applies only to the original application when held jointly.
How is SGB Issue Price Set?
The issue price is based on the average closing gold price of the last three working days before subscription, as announced by India Bullion and Jewellers Association Limited (IBJA). Online digital payments get a discount of Rs. 50 per gram.
SGB Redemption Price
Payable based on the average price of 999 purity gold over the last three working days before redemption, as published by IBJA.
Where to Buy Sovereign Gold Bonds
You can buy SGBs from commercial banks, Stock Holding Corporation of India Ltd (SHCIL), Clearing Corporation of India Ltd (CCIL), designated post offices announced by authorities, and stock exchanges like NSE and BSE—either directly or through agents.
Interest Rate on Sovereign Gold Bonds
Investors get a fixed 2.50% annual interest on the bond’s nominal value, paid every six months.
Using SGBs as Collateral
SGBs can be used as security for loans, with loan-to-value ratios matching RBI’s rules for gold loans.
Documents Needed for KYC
To buy SGBs, you must complete KYC similar to buying physical gold. Acceptable ID documents include Voter ID, Aadhaar card, PAN card, TAN card, passport, and more. Providing your PAN number is required for tax filing.
Tax Treatment of Sovereign Gold Bonds
Interest from SGBs is taxable as per Income Tax laws. However, capital gains from redemption are tax-free. Selling bonds before maturity results in long-term capital gains eligible for indexation benefits.
Sovereign Gold Bond Scheme Eligibility Criteria
- Indian Residents: Only residents defined by Foreign Exchange Management Act (1999) can invest.
- Eligible Entities: Individuals, associations, trusts, Hindu Undivided Families (HUFs), educational and charitable institutions can invest.
- Minors: Bonds can be bought by parents or guardians on behalf of minors.
Sovereign Gold Bond Returns and Interest
- Fixed Interest: 2.50% per year on bond value.
- Interest Payment: Paid twice a year.
- Gold Price Gain: Added benefit of gold price increase over time.
- Tax Benefits: Capital gains on maturity are tax-free.
- Reliable Income: Steady income along with potential from gold.
Frequently Asked Questions (FAQs)
What is the minimum and maximum investment size?
The minimum is 1 gram of gold. The maximum yearly limits are 4 kg for individuals & HUFs, and 20 kg for trusts and similar bodies.
How to pay for SGBs?
Payments are accepted via demand drafts, cheques, internet banking, and cash up to Rs. 20,000.
What is the bond’s term?
The standard term is eight years, with an option to exit after five years.
Can SGBs be traded?
Yes, Sovereign Gold Bonds can be traded on stock exchanges for easy buying and selling.