May 31 (Punjab Khabarnama) : The trend towards government gold bonds is increasing due to the possibilities of higher returns and tax benefits. Investors bought bonds worth Rs 27,031 crore in the last financial year, which is four times the gold bonds bought in 2022-23. In the financial year 2023-24, 44.34 tonnes of gold was purchased through Government Gold Bond (SGB) for Rs 6,551 crore. This information has been given in the annual report of the Reserve Bank, which issues bonds.
According to the report, the total amount raised from SGB during 2023-24 is Rs 27,031 crore (44.34 tonnes). SGB was issued in four phases last financial year. Since the launch of the SGB scheme in November 2015, a total of Rs 72,274 crore (146.96 tonnes) has been raised in 67 phases. The price of 24-carat gold per 10 grams has increased from about Rs 62,300 to Rs 73,200 in the last one year.
SGBs are government securities denominated in grams of gold. They are a substitute for physical gold. These bonds are also exempt from capital gains tax. Apart from this, the bond also offers interest at the rate of 2.50 per cent per annum on the initial investment amount. SGBs are issued in denominations of one gram of gold and multiples thereof. The minimum investment should be one gram while the maximum investment limit for individuals is four kilograms. Government gold bonds are sold through nationalized banks, notified private banks, foreign banks, designated post offices, Stock Holding Corporation of India Limited (SHCIL) and offices or branches of authorized stock exchanges directly or through their agents.