Please keep in mind all the mentioned five things before you go ahead with your investment. It's a safe, profitable and convenient mechanism to invest in gold, designed to meet the needs of different classes of investors. It offers all the benefits of physical gold without the associated risks and a regular income. The SGB 2023-24 Series II is a unique opportunity for investors to diversify their investment portfolio. Watch: As Nifty kisses 20,000 should you consider large-cap or mid-cap and small-cap stocks for your portfolio? See what share market analysts say SGBs are electronically held, eliminating any risk associated with physical gold, such as storage and theft. Investments are protected as they carry sovereign guarantees both on the capital invested and the interest. Risk and security: As SGBs are government securities, they are considered safe and virtually risk-free. It is pertinent to note that Interest benefit received on such SGBs would be subjected to tax under the head Income From Other Sources of Income Tax."ĥ. If such bonds are sold/transferred before its maturity/ redemption, the same would be subjected to tax at the rate 20% (without Indexation benefit) or 10% (with Indexation Benefit) on Long Term Capital Gain Arising on Premature Withdrawal of SGBs. where such SGBs are held till its maturity) would be exempted. Suresh Surana, Founder, RSM India, said, "Section 47(viic) of The Income Tax Act, 1961 (hereinafter referred to as ‘IT Act’) provides that the capital gains arising to an individual taxpayer on transfer of SGBs by way of redemption (i.e. Moreover, if the bonds are sold before maturity, capital gains can be paid after availing the benefits of indexation.ĭr. ![]() This makes it a tax-efficient investment. ![]() However, capital gains tax arising on the redemption of SGB to an individual has been exempt. Taxation: The GoI doesn’t ask you to pay TDS deducted or GST on the purchase or redemption of SGBs. Subscription modes: The SGBs can be subscribed through banking channels, Stock Holding Corporation of India Limited (SHCIL), selected post offices and recognized stock exchanges, either directly or indirectly through agents.Ĥ. Also read: Adani Enterprises, Adani Ports, Adani Power, other Adani group stocks rise as promoter firm increases stake in two companies check detailsģ.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |