Sovereign gold bonds have caught the flamboyant of buyers, who purchased Rs 27,031 crore value of the bonds final fiscal, an quantity greater than 4 occasions the quantity invested in 2022-23, on the prospects of upper returns and tax advantages.

The bonds purchased by buyers represented a whopping 44.34 tonne of gold throughout 2023-24. In 2022-23, Sovereign Gold Bonds (SGBs) representing 12.26 tonnes of gold had been bought for Rs 6,551 crore.

“The combination sum raised throughout 2023-24 amounted to Rs 27,031 crore (44.34 tonnes),” mentioned the annual report of the Reserve Financial institution, which points the bonds on behalf of the central authorities.

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Throughout the fiscal 12 months that led to March 2024, the bonds had been issued via 4 tranches.

Because the inception of the SGB scheme in November 2015, Rs 72,274 crore (146.96 tonnes) has been raised via 67 tranches.

The value of 24 karats per 10 grams of gold has elevated from about Rs 62,300 to Rs 73,200 in a single 12 months.

SGBs are authorities securities denominated in grams of gold. They’re substitutes for holding bodily gold. These bonds are exempt from capital good points tax.

In addition to, the bonds bear curiosity at a charge of two.50 per cent (fastened charge) each year on the preliminary funding quantity.

SGBs are issued in denominations of 1 gram of gold and multiples thereof. The minimal funding needs to be one gram, with a restrict of 4 kg subscription for people, 4 kg for Hindu Undivided Household (HUF), and 20 kg for trusts and related entities notified by the federal government once in a while per fiscal 12 months (April – March).

SGBs are bought via the places of work or branches of nationalised banks, Scheduled Personal Banks, Scheduled International Banks, designated Submit Places of work, Inventory Holding Company of India Ltd. (SHCIL), and the authorised inventory exchanges, both instantly or via their brokers.

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