What is SGB and its advantages

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116 Points Posted on 01 March 2021
please let me know the advantages and disadvantages of SGB
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On 01 March 2021 at 17:08 Report
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Quick Summary
Sovereign Gold Bonds (SGBs) are government-issued investments offering a safe way to invest in gold. They provide an annual interest of 2.5% and offer capital gains tax exemption if held for the full 8-year maturity. While interest is taxable, SGBs also provide liquidity as they are listed on stock exchanges, allowing for potential withdrawal after 5 years with indexation benefits.

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17269 Points Posted on 01 March 2021
It is abbreviated form of Soverign Gold Bonds
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On 01 March 2021 at 18:02
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123 Points Posted on 01 March 2021

SGB issued by government yearly from Oct to march at value determined from time to time.

It will give int 2.5%.

Safe investment of gold.

Same returns as compared to physical gold.

Exemption from capital gain tax if held till maturity of 8 years.

You can with draw it after 5 years than capital gain is applicable with indexation benifit for individual.

Intrest is taxable as per slab rates.

 

 

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On 01 March 2021 at 19:58
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17269 Points Posted on 01 March 2021

Plus any time liquidity as SGB are listed on stock exchanges NSE BSE

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On 01 March 2021 at 20:38

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