Visit bank or post office branch.Submit the application form and required documents.Pay the issue price in cash, DD, cheque, or e-banking.Take application receipt.
1.2.3.4.
SGB Status - Online & Offline
The units will be in the demat if subscribed online. For offline purchases, an investment certificate will be provided.
Who Can Invest in SGB
Individuals, HUFs, trusts, universities and charitable institutions.Individuals turned into NRIs can hold SGB till early redemption/maturity.
Minimum & Maximum Investment
Minimum Investment - 1 Gram.Individuals & HUFs can invest a maximum of 4 kilograms.Charitable institutions & trusts can invest a maximum of 4 kilograms.
SGBs Tax Treatment
The 2.5% interest income is taxed per your applicable tax slab.Capital gains on SGBs, held till maturity, are tax-exempt.
Capital Gain Tax on SGBs
If sold before maturity, there will be a tax on STCG according to income slab and LTCG of 10% or 20%+ indexation benefits.
Final Thought
SGBs provide an excellent way to invest in gold without storage hassle. The interest payment above capital gains adds a security layer to balance gold price volatility.