Next SGB redemption date 2024: This Sovereign Gold Bond tranche up for final redemption in August; check price, interest rate The Sovereign Gold Bond Scheme 2016-17 - Series I was issued on August 5, 2016
The Reserve Bank of India (RBI) publishes a list each fiscal year detailing the tranches of Sovereign Gold Bonds (SGB) to be issued, along with the dates of redemption and issue.#sr_widget.onDemand p, #stock_pro.onDemand p{font-size: 14px;line-height: 1.28;} .onDemand .live_stock{left:17px;padding:1px 3px 1px 5px;font-size:12px;font-weight:600;line-height:18px;top:9px} #sr_widget.onDemand .sr_desc{margin:0 auto 0;} #sr_widget.onDemand .sr_desc{color: #024d99;margin-top:10px;} #sr_widget.onDemand .crypto .live_stock .lb-icon{8px 6px 5px 3px !important} #sr_widget.crypto.onDemand a.text{border-bottom:1px solid #ccc;padding-bottom:5px;display:block;width:100%} #sr_widget.onDemand .sr_desc .text p, #stock_pro.onDemand .sr_desc .text p{font-size:12px;font-weight:400;} The tenor of the Sovereign Gold Bond is for a period of eight years with exit option from fifth year to be exercised on the interest payment dates.
Also read: Sovereign Gold Bonds up for final redemption in 2024: Tentative dates of SGBs up for redemption this year
Going by this, Sovereign Gold Bond Scheme 2016 -17 – Series I issued on August 5, 2016 will be up for final redemption next month.
Sovereign Gold Bond 2016-17 – Series I details
Sovereign Gold Bond Scheme 2016 -17 – Series I applications for the bond was accepted from July 18, 2016 to July 22, 2016. The Bonds were issued on August 5, 2016. Sovereign Gold Bond 2016-17 - Series issue price was Rs 3,119, and the bonds were issued on August 5, 2016, therefore the tentative final redemption date is in the first week of August 2024. These SGBs carry an annual interest rate of 2.75 percent (fixed rate) on the initial investment. are paid in semi-annual installments, with the last installment due along with the principal at maturity.Point to note
Note that the date of the final redemption will change depending on bank working days and other factors. RBI will send notifications via email and SMS to SGB investors one month before the redemption date.
How SGB final redemption price is calculated
The redemption price will be in Indian Rupees based on previous week’s (Monday-Friday) simple average of closing price of gold of 999 purity published by IBJA.Price of Bond will be fixed in Indian Rupees on the basis of simple average of closing price of gold of 999 purity published by the India Bullion and Jewellers Association Limited for the week (Monday to Friday) preceding the subscription period. The issue price of the Gold bonds will be Rs 50 per gram less than the nominal value.
Interest rate
The investors will be compensated at a fixed rate of 2.75 percent per annum payable semi-annually on the initial value of investment. The interest rate for present SGB is 2.5 percent.
Tax treatment
The interest on Gold Bonds shall be taxable as per the provision of Income Tax Act, 1961 (43 of 1961). The 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 TDS is not applicable on the bond.
How to buy SGB online via SBI net banking
How to register for Sovereign Gold Bond (SGB) in SBI
Step 1: Login SBI Net Banking using credentials
Step 2: Click on ‘e-Service’ from main menu
Step 3: Click on ‘ Sovereign Gold Bond Scheme’
Step 4: You must register if you are a first-time investor. Select 'Register,' from header tab then 'Terms and Conditions,' then 'Proceed.'
Step 5: Enter all your details that are not auto-filled. Add nomination and other details.
Step 6: Choose the Depository participant from NSDL or CDSL where your demat account is held.
Step 7: Enter DP ID, Client ID and click ‘Submit’ tab
Step 8: Confirm the details and click ‘ Submit’ tab
Also read: How to buy Sovereign Gold Bonds (SGB) online through SBI, HDFC Bank, PNB, Canara Bank, ICICI Bank
How to buy Sovereign Gold Bond scheme through SBI
Step 1: Login SBI Net Banking using credentialsStep 2: Click on ‘e-Service’ from main menu
Step 3: Click on ‘Sovereign Gold Bond Scheme’
Step 4: Select 'Purchase,' from header tab
Step 5: Select the tab ‘Terms and Conditions’ tab and Click ‘Proceed’
Step 6: Enter ‘Subscription quantity’, nominee details
Step 7: Click on ‘Submit’
Step 8: Enter your OTP and click ‘Confirm’.
What is the procedure to be followed in the eventuality of death of an investor?
According to the RBI FAQs, “The nominee/nominees to the bond may approach the respective Receiving Office with their claim. The claim of the nominee/nominees will be recognized in terms of the provision of the Government Securities Act, 2006 read with Chapter III of Government Securities Regulation, 2007. In the absence of nomination, claim of the executors or administrators of the deceased holder or claim of the holder of the succession certificate (issued under Part X of Indian Succession Act) may be submitted to the Receiving Offices/Depository. It may be noted that the above provisions are applicable in the case of a deceased minor investor also. The title of the bond in such cases too will pass to the person fulfilling the criteria laid down in Government Securities Act, 2006 and not necessarily to the Natural Guardian.”#sr_widget.onDemand p, #stock_pro.onDemand p{font-size: 14px;line-height: 1.28;} .onDemand .live_stock{left:17px;padding:1px 3px 1px 5px;font-size:12px;font-weight:600;line-height:18px;top:9px} #sr_widget.onDemand .sr_desc{margin:0 auto 0;} #sr_widget.onDemand .sr_desc{color: #024d99;margin-top:10px;} #sr_widget.onDemand .crypto .live_stock .lb-icon{8px 6px 5px 3px !important} #sr_widget.crypto.onDemand a.text{border-bottom:1px solid #ccc;padding-bottom:5px;display:block;width:100%} #sr_widget.onDemand .sr_desc .text p, #stock_pro.onDemand .sr_desc .text p{font-size:12px;font-weight:400;}
This story originally appeared on: India Times - Author:Faqs of Insurances
