Sovereign Gold Bond

Sovereign Gold Bond Scheme by Reserve Bank of India Sovereign Gold Bond is an investment scheme introduced by the Reserve Bank of India whic...

Sovereign Gold Bond Scheme by Reserve Bank of India

Sovereign Gold Bond is an investment scheme introduced by the Reserve Bank of India which accepts investment which is based on the price of Gold and Return on Investment is also dependent on the value of Gold, the maturity period of the scheme is 8 years from the dale of subscription redeemable from the completion of 5th year onward. The mode return is in the form of capital appreciation due to increase in the values of Gold. In addition to the value of gold RBI gives an interest of 2.5%  p.a. interest calculated semi annually which stands at 2.75%  p.a. One of the major advantages of SGB is that the capital gain arising from the redemption of the bond is exempted from Tax. However the interest income is taxable as per the applicable tax slab of the depositor.