Feb. 17, 2021, 9:56 a.m.
Key Points of SGB :
(1)Alternative for Investors investing in GOLD in physical Form.
(2)Under this scheme gold is held in electronic form so no risk of theft.
(3)Long term Investment Option and has low risk as it is backed by government of India.
(4)Lock-in period of 8 years you also have the option to exit after 5 years.
(5)Guaranteed Annual Interest of 2.5% which is taxable but a better option than holding physical gold which doesn't earn any interest.
(6)Capital Gains are exempted from Income Tax if redeemed after maturity, a plus point of holding gold in this form.
(7)Can be used as a collateral for getting Loan from Banks.
(8)The Government sells these bonds through banks, Stock Holding Corporation of India limited and selected post office.
Key Points of SGB :
(1)Alternative for Investors investing in GOLD in physical Form.
(2)Under this scheme gold is held in electronic form so no risk of theft.
(3)Long term Investment Option and has low risk as it is backed by government of India.
(4)Lock-in period of 8 years you also have the option to exit after 5 years.
(5)Guaranteed Annual Interest of 2.5% which is taxable but a better option than holding physical gold which doesn't earn any interest.
(6)Capital Gains are exempted from Income Tax if redeemed after maturity, a plus point of holding gold in this form.
(7)Can be used as a collateral for getting Loan from Banks.
(8)The Government sells these bonds through banks, Stock Holding Corporation of India limited and selected post office.