Invest in Sovereign Gold Bonds

Bonds
1

I’m relatively new investor. Can someone please clear some of my doubts regarding SGB.

  1. There is going to be a new issue for SGB on April 20th, should I invest in that or buy previously issued SGB?
  2. How do I buy previously issued SGB from secondary market, and how will it show up in my Zerodha Kite portal (demat account)?
  3. For applying to newer issues of SGB, do I have to visit zerodha/gold? If not how to apply? On zerodha/gold, it’s available for buying even right now, even though the issue has not yet started.
2
  1. Add the listed SGB symbol on the Kite market watch and buy.
  2. Yes, you apply through https://zerodha.com/gold/
3
  1. You should go for the previously issued SGB in secondary markets… They are cheaper and will also have less lock-in…
4

For previously issues SGB , do we get the 2.5% interest also every 6 months?

5

Yes… it is 2.5% annually which means 1.25% every 6 months…

7

what about taxation? is capital gains exemption available?

8

Yes.

9

hey thanks for the reply. but can you mention any document which supports this. i have been on hunt for some solid evidence for a long time but couldnot gather any.

10

RBI FAQ says that only transfers of units will lead to taxation. Redeeming of units with RBI is not a ‘transfer’. Also we have email confirmation from RBI on this…

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