- The Central government after exercising its power conferred under clause (iii) of section 3 of Government securities Act 2006has launched a new series of the Sovereign Gold Bond (SGB) Scheme namely “Sovereign Gold Bond 2020-21” which is to be issued by Reserve Bank of India (RBI) in six tranches from April 2020 to September 2020 i.e. in first half of FY 20-21. Their sale will be restricted to resident individuals, HUFs, Trusts, Universities and Charitable Institutions.
- These bonds will fetch a fixed interest rate of 50% per annum which will be taxable under Income Tax Act, 1961. On the other hand, capital gains tax arising on redemption of SGB to an individual has been exempted.
