The Ministry of Finance (MoF) on June 14, 2023, issued the Sovereign Gold Bond Scheme 2023-24 under powers conferred by clause (iii) of Section 3 of the Government Securities Act, 2006.
The foremost provisions of the scheme are as stated:
• The Gold Bonds issued under this Scheme may be held by a Trust, HUFs, Charitable Institution, University, or by a person resident in India, being an individual, in his capacity as such individual, or on behalf of a minor child, or jointly with any other individual.
• Any person who is desirous of subscribing to the Gold Bonds shall apply to any Receiving office in Form ‘A’ or in any other form as near as thereto, clearly stating the grams of gold, full name, and address of the applicant/s.
• The interest on the Gold Bonds shall commence from the date of issue and shall be paid at a fixed rate of 2.50 per cent per annum on the nominal value of the bond and the interest shall be payable in half-yearly rests and the last interest shall be payable along with the principal on maturity.
• All payments for Gold Bonds shall be accepted in Indian Rupees through cash (up to a maximum of ₹20,000/-) or demand draft, cheque, or electronic banking and where payment is made through cheque or demand draft, the same shall be drawn in favour of the Receiving Office.
• The interest received on the Gold Bond shall be taxable as per the provisions of the Income-tax Act, 1961. The capital gains tax arising on redemption of these bonds to an individual is exempted. The indexation benefits will be provided for the long-term capital gains arising to any person on transfer of bond.
It shall come into force on June 14, 2023.
[Notification No. G.S.R. 438(E)]
