Issuance: It is issued by Reserve Bank of India on behalf of the Government of India. Dates are announced by RBI, Usually 5 Times in a year. It can be purchased only on those dates from RBI, But one can buy it from open market as well using demat account.

Eligibility: The Bonds will be restricted for sale to resident individuals, HUFs, Trusts, Universities and Charitable Institutions. You can also buy it on behalf of minor.

Denomination: The Bonds will be denominated in multiples of gram(s) of gold with a basic unit of 1 gram. It can be traded only in multiple of 1gram.

Tenor: The tenor of the Bond will be for a period of 8 years with exit option after 5th year to be exercised on the next interest payment dates.

Minimum size: Minimum permissible investment will be 1 gram of gold.
Maximum limit: The maximum limit of subscription shall be 4 KG for individual, 4 Kg for HUF and 20 Kg for trusts and similar entities per fiscal (April-March) notified by the Government from time to time. A self-declaration to this effect will be obtained. The annual ceiling will include bonds subscribed under different tranches during initial issuance by Government and those purchased from the Secondary Market.

Joint holder: In case of joint holding, the investment limit of 4 KG will be applied to the first applicant only.

Issue price: Price of Bond will be fixed in Indian Rupees on the basis of simple average of closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Limited for the last 3 working days of the week preceding the subscription period. The issue price of the Gold Bonds will be ₹50 per gram less for those who subscribe online and pay through digital mode.

Payment option: Payment for the Bonds will be through cash payment (up to a maximum of ₹20,000) or demand draft or cheque or electronic banking.

Issuance form: The Gold Bonds will be issued as Government of India Stock under GS Act, 2006. The investors will be issued a Holding Certificate for the same. The Bonds are eligible for conversion into demat form.

Redemption price: The redemption price will be in Indian Rupees based on simple average of closing price of gold of 999 purity, of previous 3 working days published by IBJA Ltd.

Sales channel: Bonds will be sold through Commercial banks, Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Ltd. (CCIL), designated post offices (as may be notified) and recognized stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange, either directly or through agents.

Interest rate: The investors will be compensated at a fixed rate of 2.50 percent per annum payable semi-annually on the nominal value. Interest will be paid in 6 every six months to your bank linked with demat account.

Collateral Bonds: can be used as collateral for loans. The loan-to-value (LTV) ratio is to be set equal to ordinary gold loan mandated by the Reserve Bank from time to time.

KYC documentation: Know-your-customer (KYC) norms will be the same as that for purchase of physical gold. KYC documents such as Voter ID, Aadhaar card/PAN or TAN /Passport will be required. Every application must be accompanied by the ‘PAN Number’ issued by the Income Tax Department to individuals and other entities.

Tax treatment: The interest on Gold Bonds shall be taxable as per the provision of Income Tax Act, 1961 (43 of 1961). The capital gains tax arising on redemption of SGB to an individual has been exempted. The indexation benefits will be provided to long term capital gains arising to any person on transfer of bond.

Tradability: Bonds will be tradable on stock exchanges.

SLR eligibility Bonds acquired by the banks through the process of invoking lien/hypothecation/pledge alone, shall be counted towards Statutory Liquidity Ratio.

Commission: Commission for distribution of the bond shall be paid at the rate of 1% of the total subscription received by the receiving offices and receiving offices shall share at least 50% of the commission so received with the agents or sub agents for the business procured through them.

Maturity – 8 Years, There after can be extended for 3 years
Premature Withdrawal – 5 years

Buying Price – Current Price Of Gold
Selling Price – Gold Price after 8 years

Physical Certificate is given on allotment by RBI

Advantages
1) Safe & Secure as it is issued by RBI
2) 2.5% of simple interest on bond price, deposited into your bank account after every 6 months
3) No GST on purchase
4) No tax(Long Term) on profit or redumption amount on maturity. LTCG Tax exepmted)

Prefer using buying online
1) you will get 50 rupees per gram discount
2) Dmat account will be linked with it, then you can trade it as money(Instead RBI you can trade it in secondary market).

Tax – No Long term capital gain tax on this (irrespective of you sell it in 5, 8 or 11 years)
if it is sold to secondary market instead of RBI using dmat account, then it will be treated as normal gold sell and respective tax will be laived

This SGB certificate can be mortage to get any loan from any bank

You can buy SGB from kite app in less rate, search SGB on kite search bar and buy

Queries
1) Interest from this SGB is taxable ?
2) I have a question …. If I buy(today in 2022) a SGB from kite which was originally issued to previous owner in 2015
In this case

for me what would be maturity year ? 2023 or 2030
on maturity how my long term capital gain will be calculated ?
How I will be getting my semi annual interest ? my bank account will be automatically updated with that SGB ?

Helpful Videos
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