Sovereign Gold Investment Options

General
22

Nowadays you get a seller at 2-3% discount very easily. I don’t see any liquidity crunch, if you are ready to forego some discount…

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23

In this context I would like to mention that, in almost every issue of SGB I have seen, RBI states that

  1. Capital Gains will not be applicable on redemption of these bonds and
  2. Indexation benefit will be available in case of transfer [other than by way of redemption].

However, correspondingly the Income Tax Act confers the above benefits only for Sovereign Gold Bonds issued during November, 2015 (the first issue of SGB, I think).

Even though, that may not be the intention, unless the Income Tax Department comes out with a clarification, it has to be taken that the benefits are applicable only for the first issue.

Reference:

  1. Section 47(viic) - Income Tax Act, 1961.
  2. Fourth proviso to Section 48 - Income Tax Act, 1961.
  3. Sovereign Gold Bond Scheme, 2015.