Sovereign Gold Bond Scheme 2019 -20: Buy Gold At Rs 3788 Per Gram

The sovereign Gold Bond scheme was launched by the government in 2015 to surpass the demand of gold and to increase the people to invest in saving options. Under this article, we will tell you all the details about the Sovereign Gold Bond scheme for the year 2019 and 2020. We have thoroughly included every piece of information for the Sovereign Gold Bond Scheme 2019-2020. We have provided you the prices of gold under the Sovereign Gold Bond scheme and also all the vital information which will be needed to apply for the Sovereign Gold Bond 2019-2020

Sovereign Gold Bond Scheme 2019-20

The Sovereign Gold Bond Scheme for the year 2019 and 2020 what launched by our Honorable Finance Minister in the Union Budget 2015-16. Although as mentioned above the main focus of the Sovereign Gold Bonds scheme was to reduce the demand for physical gold as to provide a hassle-free procedure for the citizens to make savings for future use. Under the scheme as mentioned in the Union Budget, the Gold Bonds will be transferred to the citizen by the Reserve Bank of India in lieu of the Government of India.

Features Of The Scheme

The silent features of Sovereign Gold Bond for the year 2019-2020 are as follows:-

  • Tenor of the bond will be for a period of 8 years with exit option at 5th, 6th and 7th year.
  • Exit option for the customer will only be on the next coupon date.
  • Customers will be issued a Holding certificate.
  • Bonds are eligible for conversion to Demat form.
  • Coupon rate for the investors will be @ 2.75 % per annum which will be paid twice per year.
  • These bonds can be provided while taking loans and advances from banks and financial institutions.
  • The treatment of tax for these bonds will be as per the Income Tax Act, 1961 (43 of 1961), any capital gains tax shall also be the same as physical gold, since this is a substitute for the same.
  • The payment for these bonds can be made through electronic funds transfer, demand draft, cheque, and even cash payment.
  • The bonds can be purchased at Scheduled commercial banks and designated Post Offices.

Central Government Scheme

Discount Under The Scheme

The sovereign gold Bond opens up with the price fixed at Rs 3,890 per gram. But as announced by the Finance Minister, those who apply for the Sovereign Gold Bond scheme for the year 2019-2020 via digital mode or online payment such as net banking they will avail a discount of Rupees 50. For such investors, the issue price of gold bond will be Rs 3,738 per gram of gold.

Sovereign Gold Bond Scheme

Minimum And Maximum Bonds Limit

Bonds will be issued in denominations of a basic unit of one gram and multiple of one unit.

  • The minimum investment is of 1 Unit (1 Gram).
  • The maximum amount that can be bought by an entity will be 4000 grams per person per fiscal year.

The maximum limit of subscription is –

  • 4 kg – Hindu Undivided Family (HUF)
  • 20 kg – Trusts and similar entities per fiscal

Eligibility For The Scheme

Only the following people are eligible for the Sovereign Gold Bond scheme 2019-2020:-

  • The citizens of India
  • HUFs is known as Hindu Undivided Family.
  • Trusts
  • Universities
  • Charitable institutions
  • NRIs are not allowed to invest in the scheme.

How To Buy Gold in Sovereign Gold Bond Scheme

The following application process to apply for the Sovereign Gold Bond Scheme 2019-2020:-

  • First, visit the official website of any of your bank in which you have to open your account previously.
  • Click on the link called Apply for Sovereign Bonds
  • A web page will be displayed.
  • Fill in all your bank account details such as your CRN number, Account number, Name, etc.
  • Click on Confirm.
  • A new web page will open enter the number of bonds you want to invest in.
  • Click on Submit
  • After that, a confirmation message will be displayed on your screen saying that you have successfully invested in the number of bonds.

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