Sovereign Gold Bond Scheme 2021-22: 2.5% Interest, 8-Year Term, Tax-Free Redemption, Loan Collateral Options.

The Sovereign Gold Bond Scheme 2021-22, issued by the Ministry of Finance, details the issuance and management of gold bonds under the Government Securities Act, 2006. Eligible investors include individuals, trusts, and institutions, with specific subscription limits per fiscal year. Bonds are denominated in grams of gold, with a fixed interest rate of 2.50% per annum, payable semi-annually. Redemption is set at eight years, with early redemption options after five years. Bonds can be used as collateral for loans and are exempt from capital gains tax upon redemption. Nomination and transfer provisions are outlined, and bonds are eligible for trading as notified by the Reserve Bank of India.