SGB Bond investment on Company Name

[ramesh1985]

Hi,

If we invest in SGB Bonds on Private Limited Company, Does it have the same advantage of Capital gain tax-exempt on redemption?

Also any other issues or demerits? If the investment is made on Company?

[ShubhS9]

@Bhuvan

[Bhuvan]

@ramesh1985

Hi,

If we invest in SGB Bonds on Private Limited Company, Does it have the same advantage of Capital gain tax-exempt on redemption?

Also any other issues or demerits? If the investment is made on Company?

First thing, there is no such thing called as a “SGB Bonds on Private Limited Company”.

SGB means - Sovereign Gold Bond which is issued by the RBI.

What are sovereign gold bonds?

In simple words, government sovereign gold bond scheme is where instead of having  physical gold sitting idle in your house, you can invest in gold bonds.  These gold bonds are in demat form, and unlike physical gold gives you an interest of 2.75% annually additional to whatever appreciation happens on the underlying gold value. This interest payment is half yearly on 30th May and 30th Nov.  What happens if gold value drops?  If it drops, your value of gold bond also drops. It is the same way…

Bonds issued by companies are called as corporate bonds and they are taxed as per your slab.

Taxation on Gains from Bond Investment in India - GoldenPi | Blogs

[ramesh1985]

I have placed one order for SGB in zerodha.com/gold. Where can we see this SGB order?