Sovereign Gold Bond Scheme issues gram-denominated bonds with 2.5% interest, transferability, collateral use, and capital gains exemption. The Scheme issues Government of India Stock in denominations of one gram (and multiples) with annual subscription ceilings per category; nominal value is fixed by the simple average closing price of 999 purity gold over the three preceding working days, with an online digital-payment discount. Bonds pay fixed interest at 2.50% per annum, payable half-yearly, are redeemable at eight years (premature redemption allowed after year five), convertible to Demat, transferable, eligible for trading, usable as collateral subject to LTV norms, and feature taxable interest but exemption of capital gains on redemption for individuals with indexation on transfers.
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Provisions expressly mentioned in the judgment/order text.
Sovereign Gold Bond Scheme issues gram-denominated bonds with 2.5% interest, transferability, collateral use, and capital gains exemption.
The Scheme issues Government of India Stock in denominations of one gram (and multiples) with annual subscription ceilings per category; nominal value is fixed by the simple average closing price of 999 purity gold over the three preceding working days, with an online digital-payment discount. Bonds pay fixed interest at 2.50% per annum, payable half-yearly, are redeemable at eight years (premature redemption allowed after year five), convertible to Demat, transferable, eligible for trading, usable as collateral subject to LTV norms, and feature taxable interest but exemption of capital gains on redemption for individuals with indexation on transfers.
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