RBI – Sovereign Gold Bond Scheme – Series II, March 2016
Tranche-II of RBI sovereign Bonds has been launched. Here are the main points you may be interested to know.
| Issue Period | 08/03/2016 to 14/03/2016 |
| Minimum Investment | Rs. 5,832 (Rs.2916 x 2 gms) |
| Maximum Investment | Rs. 14,58,000 (Rs.2916 x 500 gms) (The maximum amount subscribed by an entity will not be more than 500 grams per person per fiscal year (April-March). (A self-declaration to this effect will be obtained.) |
| Issue Price | Rs.2916 |
| Interest | 2.75% p.a. payable semi-annually on the initial value of investment. |
| Tenor | The tenor of the Bond will be for a period of 8 years with exit option from 5th year to be exercised on the interest payment dates. |
| Tradability | Bonds will be tradable on exchanges/NDS-OM from a date to be notified by RBI. |
| Tax treatment | The interest on Gold Bonds shall be taxable as per the provision of Income Tax Act, 1961 (43 of 1961) and the capital gains tax shall also remain same as in the case of physical gold. |
*These bonds can be held either in Dmat or Physical. The applications need to be submitted at SBI Branch.
**SBI branch will not accept cheque or DD of other banks after clearing time on 10/3/2016 hence ensure to bank non-SBI cheques / DDs before the said cut-off times.
Instructions for Investor/ Applicants
a) Application should be complete in all respects.
b) Incomplete applications may be rejected or delayed till full particulars are available.
c) In case the application is submitted by a Power of Attorney (POA) holder, please submit original POA for verification, along with an attested copy.
d) In case the application is on behalf of a minor, please submit the original birth certificate from the School or Municipal Authorities for verification, together with an attested copy.
e) Please note that nomination facility is available to a Sole Holder or all the joint holders (investors) of an SGB.
f) In case nominee is a minor, please indicate the date of birth of the minor and a guardian can be appointed.
g) Nomination facility is not available in case the investment is on behalf of minor.
h) Please provide bank account details for receiving payment through Electronic mode.
i) Please notify the change of bank account, if any, immediately.
j) POST MATURITY INTEREST IS NOT PAYABLE.
k) Indicate your date of birth.
Rights of the Investors
a) Holding Certificate will be issued to the investor.
b) The interest on the bond is paid half-yearly. The servicing of the Interest will be done through the bank A/c provided in the Application for or in through the A/c linked to the de-mat, as the case may be.
c) Application forms for investments under Sovereign Gold Bonds 2016 – Series II are available on the website at www.rbi.org.in/finmin.nic.in
d) A sole holder or all the joint holders may nominate maximum of two nominees to the rights of the bonds.
e) The nomination will be registered at the Office of Issue and a Certificate of Registration will be issued to the holder.
f) The nomination can be altered by registering a fresh nomination.
g) The existing nomination can be cancelled by a request to the Office of Issue.
h) The investor is entitled to receive repayment amount within five clear working days from the date of tender of application for early redemption.
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CA Shafaly Girdharwal
CA
New Delhi, India
CA Shaifaly Girdharwal is a GST consultant, Author, Trainer and a famous You tuber. She has taken many seminars on various topics of GST. She is Partner at Ashu Dalmia & Associates and heading the Indirect Tax department. She has authored a book on GST published by Taxmann.
