Sovereign Gold Bond 2019-20 Series IX: The 36th installment of Sovereign Gold Bond (Sovereign Gold Bond) will get a chance to redeem before maturity for the first time, the bond holders will get the opportunity of premature redemption on February 11, but similarly Bond holders will be able to redeem this bond which will be applied for it by 1 February. The process of applying has already started before January 10. If you do not apply during this period, you will not be able to sell it before maturity on 11 February 2025.
The ninth series of FY 2019-20 i.e. 36th Sovereign Gold Bond (In0020190545) Subscribers were released on 11 February 2020 at an issue price of Rs 4,070. A total of 4,059,57 units were purchased for this bond during the subscription period. The bond will be matured on 11 February 2028. The maturity period of this bond is 8 years.
Secondary market In Premium But Tax are Trade
It is currently trading at the secondary market i.e. Stock Exchange (NSE) at a price of Rs 8,250 per gram with about 2 per cent premium. According to IBJA, the initial price of 24 carat gold (999) was recorded at Rs 8,101 per gram on 30 January today. The listing of this bond took place on 17 February 2020 on the stock exchange.
Premature Redemption Price Of When? Declaration Will do RBI,
The issue and redemption price for Sovereign Gold Bonds are fixed based on the rate received from IBJA for gold. According to the rules, the redemption price for Sovereign Gold Bonds is average averages of the closing price of 24 carat gold (999) received by IBJA (999) received by IBJA (999) for 3 business days just before the date of premature redemption. This bond will be first to be the first premature redemption on 11 February 2025, so the premature redemption price of this series will be decided on the basis of the closing price of 6 February, 7 February and 10 February. RBI (RBI) Announcement of Premature Redemption Price for this bond 10 February 2025 After the closing price comes, it will be late in the evening.
Premature Redemption Of Case In What Say Are Tax Rule,
If you redeem this bond before the maturity period, it will look like Listed Financial Assets. Meaning that Sovereign sells gold bonds before you sell it before 12 months, then the earnings i.e. capital gains will be considered as short-term capital gains (STCG), which will be added to your gross total income and according to your tax slab Tax will have to be repaid. But if you sell after 12 months, then the earnings i.e. capital gains will be considered as long-term capital gains (STCG) on which you will have to pay 12.5 % long-term capital gains (LTCG) tax. But if you hold Sovereign Gold Bond for its maturity i.e. 8 years, then you will not have to pay any tax at the time of redemption.
When? Tax Can Are Premature Redemption ,
Investors also have the option to redeem Sovereign Gold Bond before maturity. You can redeem Sovereign Gold Bond before maturity 5 years after its issue. RBI determines the date of premature redemption on the day the interest is payable on this bond. Interest on this bond is available every six months i.e. two times a year. This bond gets an interest of 2.5 per cent annually.