The second tranche of Sovereign Gold Bonds (SGB) 2017-18, issued by the Reserve Bank of India on behalf of Government of India, is currently open for subscription. The SGB scheme was introduced in 2015, as an alternative to investing in physical gold. The redemption price will be based on the previous week’s simple average closing gold price for 999 purity, as published by the IBJA. While the SGB scheme and gold ETFs are linked to the price of physical gold, SGB also gives an assured interest on top of the investment. Moreover, while gains—short- or long-term—from selling physical gold attract capital gain tax, the gains arising from redemption of SGBs—for individuals—is exempted from income tax.

Source: Mint July 11, 2017 10:18 UTC