SGB collects over Rs 31K cr since launch
As the gold prices have corrected in the recent past, the latest issue is priced at Rs 4,790 per gram
Chennai: The sovereign gold scheme (SGB) has collected more than Rs 31,000 crore since its launch in 2015-16.
Ahead of the fourth sovereign gold bond issue of FY22 on Tuesday, minister of finance Nirmala Sitharaman informed the Lok Sabha that the bonds have collected a total of Rs 31,290 crore since its launch in November 2015.
As the gold prices have corrected in the recent past, the latest issue is priced at Rs 4,790 per gram, lower than the previous three issues of the current financial year. Gold bond purchases grew four-fold in FY21 against the previous year. Till FY21, investors had purchased a total of 58.8 tonnes of gold through the primary market.
However, there is an investment limit of 4 kg per fiscal for individuals and Hindu undivided family (HUF) and 20 kg per fiscal for trusts and similar entities. The ceiling will include the SGBs purchased in the secondary market. The ceiling on investment will not include the holdings as collateral by banks and financial institutions.
At 2.50 per cent per annum, the interest is payable on a half-yearly basis. Interest on the bonds is taxable as per the provisions of the Income-tax Act. However, capital gains tax arising on redemption of SGB to an individual has been exempted. The indexation benefits will be provided to long-term capital gains arising to any person on transfer of bond.