The Ministry of Finance on Thursday said that the subscription for Series III of the Sovereign Gold Bond Scheme 2022-23 will open on December 19. The applications will close on December 23 and they will be issued on December 27.
“The interest on the Gold Bonds shall commence from the date of issue and shall be paid at a fixed rate of 2.50 per cent 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 notification by the ministry read.
For the Series IV of the SGB 2022-23, the application will open on March 6, 2023, and close on March 10, 2023. The bonds will be issued on March 14, 2023.
The nominal value of Gold Bonds will be in Indian Rupees fixed on the basis of simple average of closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Limited, for the last 3 working days of the week preceding the subscription period.
“The issue price of the Gold Bonds will be less than the nominal value by Rs 50 per gram to those investors applying online and making the payment against the application through digital mode,” the ministry said.
The bonds issued under the scheme can be held by a Trust, HUFs, Charitable Institution, University or by a person resident in India, being an individual, in his capacity as such individual, or on behalf of a minor child, or jointly with any other individual.
“The interest received on the Gold Bond shall be taxable as per the provisions of the Income-tax Act, 1961 (43 of 1961). The capital gains tax arising on redemption of these bonds to an individual is exempted,” it added.