Ashley gardner seinfeld

The interest on the Gold Bonds shall commence from the date of issue and shall be paid at a fixed rate of 2.50 percent per annum on the nominal value of the bond. The interest shall be payable in half-yearly rests and the last interest shall be payable along with the principal on maturity.

The interest received on the Gold Bond shall be taxable as per the provisions of the Income-tax Act, 1961 ( 43 of 1961). So for individual person, the tax on interest will be based on tax slab.

Sovereign gold bond on maturity/premature redemption, the Gold Bonds shall be redeemded in Indian Rupees and the redemption price shall be based on simple average of closing price of gold of 999 purity of previous 3 working days, published by the Indian Bullion and Jewellers Association Limited.

Provided that premature redemption of Gold Bonds may be permitted after fifth year from the date of issue of bonds and such repayments will be made on the date on which interest is payable.

Sovereign gold bond redeemed before 8 year and after 5 years period then capital gains are taxed at 20% with indexation benefits. TDS is not applicable on the bond. It is responsibility of the bond holder to comply with tax laws.

If sovereign gold bond held till maturity of 8 years then capital gains are completely exempted from income tax. TDS is not applicable on the bond. RBI / depository shall inform the investors one months in advance, about date of maturity of the bond.