{"id":660,"date":"2019-09-09T14:11:34","date_gmt":"2019-09-09T14:11:34","guid":{"rendered":"https:\/\/www.finsafe.in\/financial-wellness\/?page_id=660"},"modified":"2021-11-03T11:00:58","modified_gmt":"2021-11-03T05:30:58","slug":"gold-faqs","status":"publish","type":"page","link":"https:\/\/www.finsafe.in\/financial-wellness\/gold-2\/gold-faqs\/","title":{"rendered":"Gold"},"content":{"rendered":"\t\t
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FAQs<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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1. Is buying gold jewelry considered an investment?<\/strong><\/p>

Gold jewelry cannot be considered as an investment. Though the gold can be liquidated at future gold price, the overheads like making charges, wastage etc is very high @ 20-25%, thus making it an unviable investment.<\/p>

2. What is the maximum period of investment in SGB?<\/strong><\/p>

The bond\u2019s maturity period is for 8 years. However, you can choose to exit the bond from 5thyear onwards (only on interest payout dates).<\/p>

3.\u00a0<\/strong>Would there be tax payable for selling\u00a0 gold jewellery after 5 years and re investing the amount for buying a house?<\/span><\/b><\/p>

Gold if sold after 3 years is applicable to long term capital gains tax. The sale price needs to be reduced by indexed cost of acquisition (or purchase price) to arrive at capital gain. This capital gain would be taxed at 20%. <\/span><\/p>

However, if the amount is reinvested in purchasing a house, the amount re-invested can be claimed as exempt from tax under Section 54F.<\/span><\/p>

4.\u00a0<\/b><\/span><\/span>If gold jewellery is sold within 3 years from purchase, how much tax would be payable?<\/span><\/b><\/p>

Gold if sold before 3 years is applicable to short term capital gains tax. The short term capital gains are added to income and taxed as per your applicable tax slab rate.\u00a0<\/span><\/p>

5. How can I view SGB bonds online?<\/span><\/p>

You can view it in your demat account.\u00a0 In case of online applications, the certificate of holding is emailed to the customer by the depository.\u00a0<\/p>

6. When will the customers be issued Holding Certificate?<\/strong><\/p>

The customers will be issued Certificate of Holding on the date of issuance of the SGB. Certificate of Holding can be collected from the issuing banks\/ SHCIL offices\/ Post Offices\/ Designated stock exchanges\/ agents or obtained directly from RBI on email, if email address is provided in the application form.\u00a0<\/p>

7. Can one apply for SGB online?<\/strong><\/p>

Yes, a customer can apply online through the website of the listed scheduled commercial banks. The issue price of the Gold Bonds will be Rs 50 per gram less than the nominal value to those investors applying online and the payment against the application is made through digital mode.\u00a0<\/p>

8. What is the interest rate offered by SGB\u2019s?<\/strong><\/p>

The current interest rate for SGB is 2.50% annually. Returns are linked to the current market price of gold.<\/p>

9. Who is eligible to invest in the SGBs?<\/strong><\/p>

Eligible investors include individuals, HUFs, trusts, universities, charitable institutions,<\/p>

10. Is joint holding allowed in SGB?<\/strong><\/p>

Yes, joint holding is allowed.<\/p>

11. Can a Minor invest in SGB?<\/strong><\/p>

Yes. The application on behalf of the minor has to be made by his \/ her guardian.<\/p>

12. Is Gold ETF tax-free?<\/strong><\/p>

No. It is taxed as capital gains.<\/p>

13. Is KYC documentation necessary to buy SGB\u2019s?<\/strong><\/p>

Yes.<\/p>

14. What are the Know-Your-Customer (KYC) norms?<\/strong><\/p>

Know-Your-Customer (KYC) norms will be the same as that for purchase of physical form of gold. Identification documents such as Aadhaar card\/PAN or TAN \/Passport \/ Voter ID card will be required. KYC will be done by the issuing banks\/Post Offices\/agents.<\/p>

15. What is the minimum and maximum limit for investment in sovereign gold bond?<\/strong><\/p>

The Bonds are issued in denominations of one gram of gold and in multiples thereof. Minimum investment in the bond is two grams and maximum buying limit is 500 grams per person in a fiscal year (Apr to March).<\/p>

16. Who can issue SGB\u2019s?<\/strong><\/p>

Only government of India Stocks on behalf of RBI can issue gold bonds.<\/p>

17. Do you get indexation benefits in SGB\u2019s?<\/strong><\/p>

Indexation benefit is available on long term capital gains that may accrue on sale of the SGB before maturity.<\/p>

18. What are the tax implications on interest and capital gain on SGB?<\/strong><\/p>

Interest on SGB is taxable as per the income tax slab of the investor. Long term capital gains on SGB is 20% with indexation benefit. Short term capital gain will be applicable if the bonds are sold within 3 years from the purchase date and will be taxed as per the applicable tax slab.\u00a0<\/p>

19. Is tax deducted at source (TDS) applicable on the bond?<\/strong><\/p>

TDS is not applicable on the bond. However, it is the responsibility of the bond holder to comply with the tax laws.<\/p>

20. Can I get the bonds in demat form?<\/strong><\/p>

The bonds can be held in demat account.<\/p>

21. Can I trade these bonds?<\/strong><\/p>

The bonds are tradable on stock exchanges from the date to be notified by RBI. The bonds can also be sold and transferred as per provisions of Government Securities Act.<\/p>

22. What are the safe and secure options\/ ways to buy gold (not physically)?<\/strong><\/p>

The better options to buy gold are in the form of Sovereign Gold Bond and Gold Exchange Traded Funds.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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Index<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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About<\/strong><\/a><\/p>

FAQs<\/strong><\/a><\/p>

Articles<\/strong><\/a><\/p>

Videos<\/strong><\/a><\/p>

Calculators <\/strong><\/a><\/p>

Finguide<\/strong><\/a><\/p>

Post<\/strong><\/a><\/p>

Glossary<\/strong><\/a><\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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The articles are from various news publications & some of the articles may need a subscription.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Disclaimer :<\/b> The purpose of the Training Materials and the resources is to encourage you to plan for \u00a0investments based on \u00a0goals and is solely meant for education purposes. There is no guarantee that \u00a0goals will be achieved. The workforce are advised to consult their investment \/ financial advisor, prior to taking any investment decisions. While, every care has been taken in preparing the Training Materials and the Documentation to ensure accuracy at the time of publication and creation, however, FINSAFE India Private Ltd assumes no responsibility for any errors, which despite all precautions may be found herein. Finsafe India Private Limited shall not be liable under, or in connection with:<\/p>\n\n

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    FAQs 1. Is buying gold jewelry considered an investment? Gold jewelry cannot be considered as an investment. Though the gold […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":504,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":[],"_links":{"self":[{"href":"https:\/\/www.finsafe.in\/financial-wellness\/wp-json\/wp\/v2\/pages\/660"}],"collection":[{"href":"https:\/\/www.finsafe.in\/financial-wellness\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.finsafe.in\/financial-wellness\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.finsafe.in\/financial-wellness\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.finsafe.in\/financial-wellness\/wp-json\/wp\/v2\/comments?post=660"}],"version-history":[{"count":24,"href":"https:\/\/www.finsafe.in\/financial-wellness\/wp-json\/wp\/v2\/pages\/660\/revisions"}],"predecessor-version":[{"id":5356,"href":"https:\/\/www.finsafe.in\/financial-wellness\/wp-json\/wp\/v2\/pages\/660\/revisions\/5356"}],"up":[{"embeddable":true,"href":"https:\/\/www.finsafe.in\/financial-wellness\/wp-json\/wp\/v2\/pages\/504"}],"wp:attachment":[{"href":"https:\/\/www.finsafe.in\/financial-wellness\/wp-json\/wp\/v2\/media?parent=660"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}