look news india
Gold prices high: Gold prices are reaching new heights every day. Yesterday the price of gold was Rs 2.55 in most cities. There has been an increase of 75000. So far in April, the price of gold has reached Rs 2.55 crore. It has increased to 5500. Currently, returns of more than 33 percent have been seen on Sovereign Gold Bond. Taking advantage of this strong rise in gold, investors can sell sovereign gold bonds and book profits. Is it possible? let's find out…
On April 15, 22.43 crore sovereign gold bond volume was recorded on the National Stock Exchange. Sovereign gold bonds are purer and safer than physical gold in dematerialized form. It is worth noting that, the maturity period of Sovereign Gold Bond is 8 years, you can sell the Sovereign Gold Bond only after eight years. However, investment can also be withdrawn from it through RBI after five years from the date of issue of gold bond.
Sovereign Gold Bond can be encashed before maturity
Sovereign Gold Bonds can be encashed only after the completion of the maturity period of eight years. But you can withdraw the investment even after five years with the help of RBI. Apart from this, it is possible to sell Sovereign Gold Bond in the stock market even before five years. For which its units are required to be in dematerialized form.
Tax on sale of sovereign gold bonds
No capital gains tax is applicable on the sale of sovereign gold bonds after maturity. But if you redeem before maturity, you will have to pay tax on the interest. No tax is levied on payment of money by RBI.
tax on interest
Interest on Sovereign Gold Bond is paid every second month. Due to which your income increases. Therefore, tax has to be paid as per the tax slab at the end of the financial year.
sale before maturity
If you sell 100 units of Sovereign Gold Bond Series-I 2017-18 within eight years of purchase, capital gains tax is applicable on the returns received on its sale. Sale of gold bonds before maturity is taxable. 10 percent tax is levied on selling the bond after 3 years. But if the investor falls in a higher tax slab then he will have to pay 30 percent tax.