New issue of Sovereign Gold Bond launches today🤩
With the upside of Gold, you get 2.5% interest🤯
Here's all you need to know about #SGB🪙🧵👇
With the upside of Gold, you get 2.5% interest🤯
Here's all you need to know about #SGB🪙🧵👇
1/ What is a Sovereign Gold Bond (SGB)?
Instead of buying physical gold, the SGBs come in a Demat form
The value of these bonds increase with gold's value & vice-versa📈
No risk of theft or being defrauded with impure gold😌
Best Part🤩: The Govt and RBI back these bonds
Instead of buying physical gold, the SGBs come in a Demat form
The value of these bonds increase with gold's value & vice-versa📈
No risk of theft or being defrauded with impure gold😌
Best Part🤩: The Govt and RBI back these bonds
2/ Why not physical gold?
Imagine you go out to purchase physical Gold for investment purpose
A. You doubt whether it’s pure
Thugs ditch tens of people with fake gold daily
In India, this problem is very rampant🥵
Keep reading👇
Imagine you go out to purchase physical Gold for investment purpose
A. You doubt whether it’s pure
Thugs ditch tens of people with fake gold daily
In India, this problem is very rampant🥵
Keep reading👇
B. You pay making charges
Range: 3-25% of the value of gold purchased
Tanishq’s charges start from 8%
C. Resale value
Depends on how desperate you are to realise it
The discount on resale value be as low as 1% to even 20-30%
This is how bad your calculation can be like🥵👇
Range: 3-25% of the value of gold purchased
Tanishq’s charges start from 8%
C. Resale value
Depends on how desperate you are to realise it
The discount on resale value be as low as 1% to even 20-30%
This is how bad your calculation can be like🥵👇
3/ Terms of SGBs
🔶 2.5% p.a. interest payable twice a year on your initial investment amount
🔶 Govt / RBI will redeem after 8 years of investment
However, you can redeem it after 5 years also
🔶 If held in Demat form, it can be sold to other investors also
🔶 2.5% p.a. interest payable twice a year on your initial investment amount
🔶 Govt / RBI will redeem after 8 years of investment
However, you can redeem it after 5 years also
🔶 If held in Demat form, it can be sold to other investors also
4/ Minimum and Maximum Investment
🔶 At least 1 gram equivalent needs to be bought
Present 1 gm rate of gold is ₹5,410
🔶 Maximum of 4 Kgs per year by Individuals and HUFs
🔶 Maximum of 20 Kgs by Trusts and other entities
P.S. Only residents of India can buy SGBs
🔶 At least 1 gram equivalent needs to be bought
Present 1 gm rate of gold is ₹5,410
🔶 Maximum of 4 Kgs per year by Individuals and HUFs
🔶 Maximum of 20 Kgs by Trusts and other entities
P.S. Only residents of India can buy SGBs
5/ Taxability
🔶 Interest
2.5% p.a. interest is taxable as per relevant slab rates to the investor
🔶 Capital Gains
EXEMPT, if held till maturity of 8 years🤩
Physical Gold will still be taxable
Taxable if you sell before maturity of 8 years.
Read more👇
🔶 Interest
2.5% p.a. interest is taxable as per relevant slab rates to the investor
🔶 Capital Gains
EXEMPT, if held till maturity of 8 years🤩
Physical Gold will still be taxable
Taxable if you sell before maturity of 8 years.
Read more👇
6/ Capital Gains on SGB if sold before maturity
🔶 If sold within 3 years
Short term capital gains on profit applicable as per slab rate
🔶 If sold after 3 years but before maturity
Long term capital gains at 20% (after indexation)
Or 10% without indexation
🔶 If sold within 3 years
Short term capital gains on profit applicable as per slab rate
🔶 If sold after 3 years but before maturity
Long term capital gains at 20% (after indexation)
Or 10% without indexation
7/ Saving GST
Now since, you've made it till here
You deserve to know the best part which top bank websites also miss to mention
GST on physical gold purchase is 3%
However, on SGB - No GST🤩
GST is applicable only on brokerage which your platform might / might not charge
Now since, you've made it till here
You deserve to know the best part which top bank websites also miss to mention
GST on physical gold purchase is 3%
However, on SGB - No GST🤩
GST is applicable only on brokerage which your platform might / might not charge
Wanna learn more? Join our courses on:
- Fundamental Analysis
- Personal Finance
- Mutual Funds
- Basics of Stock Markets
- Technical Analysis
learnpersonalfinance.in
- Fundamental Analysis
- Personal Finance
- Mutual Funds
- Basics of Stock Markets
- Technical Analysis
learnpersonalfinance.in
It took me 3+ hours to research and write on this topic🥲
If you understood it within 15 mins, kindly:
- Follow me (@BahlKanan)
- Retweet the first (
इतना तो बनता है यार! Come on :P
If you understood it within 15 mins, kindly:
- Follow me (@BahlKanan)
- Retweet the first (
इतना तो बनता है यार! Come on :P
Disclaimer: Not an investment advice. Shared only for educational and awareness purpose.
Loading suggestions...