Ministry of Finance

Sovereign Gold Bond Scheme 2022-23

Dated: 16 JUN 2022

The Government of India, in consultation with the Reserve Bank of India, has decided to issue Sovereign Gold Bonds in tranches as per the calendar specified below:

S. No.	Tranche	Date of Subscription	Date of Issuance
1.	2022-23- Series I	June 20- June 24, 2022	June 28, 2022
2.	2022-23 Series II	August 22 –August 26, 2022	August 30, 2022

 

The Sovereign Gold Bonds (SGBs) will be sold through Scheduled Commercial banks (except Small Finance Banks and Payment Banks), Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), designated post offices, and recognised stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange Limited. The features of the Bond are as under:

 

Sl. No.	Item	Details
1	Product name	Sovereign Gold Bond Scheme 2022-23
2	Issuance	To be issued by Reserve Bank of India on behalf of the Government of India.
3	Eligibility	The SGBs will be restricted for sale to resident individuals, HUFs, Trusts, Universities and Charitable Institutions.
4	Denomination	The SGBs will be denominated in multiples of gram(s) of gold with a basic unit of one gram.
5	Tenor	The tenor of the SGB will be for a period of eight years with an option of premature redemption after 5th year to be exercised on the date on which interest is payable.
6	Minimum size	Minimum permissible investment will be One gram of gold.
7	Maximum limit	The maximum limit of subscription shall be 4 KG for individual, 4 Kg for HUF and 20 Kg for trusts and similar entities per fiscal year (April-March) notified by the Government from time to time. A self-declaration to this effect will be obtained. The annual ceiling will include SGBs subscribed under different tranches, and those purchased from the Secondary Market, during the fiscal year.
8	Joint holder	In case of joint holding, the investment limit of 4 KG will be applied to the first applicant only.
9	Issue price	Price of SGB will be fixed in Indian Rupees on the basis of simple average of closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Limited (IBJA) for the last three working days of the week preceding the subscription period. The issue price of the SGBs will be less by ` 50 per gram for the investors who subscribe online and pay through digital mode.
10	Payment option	Payment for the SGBs will be through cash payment (upto a maximum of `20,000) or demand draft or cheque or electronic banking.
11	Issuance form	The SGBs will be issued as Government of India Stock under Government Securities Act, 2006. The investors will be issued a Certificate of Holding for the same. The SGBs will be eligible for conversion into demat form.
12	Redemption price	The redemption price will be in Indian Rupees based on simple average of closing price of gold of 999 purity, of previous three working days published by IBJA Ltd.
13	Sales channel	SGBs will be sold through Commercial banks, Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), designated post offices (as may be notified) and recognised stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange Limited, either directly or through agents.
14	Interest rate	The investors will be compensated at a fixed rate of 2.50 percent per annum payable semi-annually on the nominal value.
15	Collateral	Bonds can be used as collateral for loans. The loan-to-value (LTV) ratio is to be set equal to ordinary gold loan mandated by the Reserve Bank from time to time.
16	KYC documentation	Know-your-customer (KYC) norms will be the same as that for purchase of physical gold. KYC documents such as Voter ID, Aadhaar card/PAN or TAN /Passport will be required. Every application must be accompanied by the ‘PAN Number’ issued by the Income Tax Department to individuals and other entities.
17	Tax treatment	The interest on SGBs shall be taxable as per the provision of Income Tax Act, 1961 (43 of 1961). The capital gains tax arising on redemption of SGB to an individual is exempted. The indexation benefits will be provided to long term capital gains arising to any person on transfer of bond.
18	Tradability	SGBs shall be eligible for trading.
19	SLR eligibility	SGBs acquired by the banks through the process of invoking lien/hypothecation/pledge alone, shall be counted towards Statutory Liquidity Ratio.
20	Commission	Commission for distribution of the bond shall be paid at the rate of  one percent of the total subscription received by the receiving offices and receiving offices shall share at least 50 percent of the commission so received with the agents or sub agents for the business procured through them.

 

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Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

New Delhi, 8th June, 2022

PRESS RELEASE

Release of e-book “Aarohan” by Hon’ble Union Minister of State (Independent Charge) Dr. Jitendra Singh

Dr. Jitendra Singh, Hon’ble Union Minister of State (Independent Charge) Science and Technology, MoS (Independent Charge) Earth Sciences, MoS (PMO), MoS (Personnel, Public Grievances and Pensions), MoS (Atomic Energy) and MoS (Space), released the e-book titled “Aarohan” today, at an event organized by the Income Tax Department.

Inspired by the Hon’ble Prime Minister’s call to celebrate “Azadi ka Amrit Mahotsav” through ideas and ideals that have shaped India and by reinforcing commitments to specific goals and targets, the Income Tax Department is organising a number of activities across the country commemorating the event. The release of the e-book “Aarohan” is part of the celebrations of Azadi ka Amrit Mahotsav organized under the aegis of Ministry of Finance during the iconic week from 6^th to 11^th June, 2022.

The Hon’ble Union Minister of State, while releasing “Aarohan”, observed that the present Government has been at the forefront in initiating reforms in the area of Direct Taxes. He stated that the legislative and administrative reforms undertaken by the government have resulted in increased voluntary compliance by the tax payers and the number of taxpayers as well as number of return filers has also increased substantially. Hon’ble Minister also noted that the evolution in the Income Tax Department has taken place along with the evolution of Indian society since Independence and has brought about a change in the economic behaviour of people. He also complimented the Department on their work during the difficult Covid times, appreciating the sensitivity displayed towards the taxpayers. The Hon’ble Minister called upon the Tax Administration to aim for the next 25 years in this Amrit Kaal by simplifying and demystifying complex tax laws and processes so that a wider taxpayer base is achieved by the 100^th Year of Independence. He hoped that “Aarohan”, while serving as a souvenir to the nation will also serve as a source of inspiration for young IRS Officers.

          Chairperson, CBDT, Smt. Sangeeta Singh, in her welcome address underlined the contribution of the taxpayers and the Income Tax Department to nation building. She also stated that, during the Azadi ka Amrit Mahotsav celebrations, the Department must look at the future, taking inspiration from the past. She also commended the hard work put in by the officers and officials of the Income Tax Department in achieving the highest ever net collections of Rs. 14.09 lakh crore in the last fiscal and also the efforts of the Department in increase in the number of ITRs filed for A.Y. 2021-22. She also conveyed that the Income Tax Department welcomes the future with renewed hope, aspirations and a strong determination to perform even better in the coming years.

         “Aarohan”, which translates to ‘Ascent’, shows the steady evolution of the Income Tax Department from its early years till the present date. The e-book gives an overview of the major reforms undertaken over the years in the Income Tax Department and showcases the contribution of different batches of the Indian Revenue Service to tax administration since Independence. The seven chapters of the book deal with the seven decades, highlighting the important reforms that took place in the Income Tax Department and the leadership provided by the officers of the Indian Revenue Service. This period saw the Department’s growth towards a more responsive, service-oriented organisation.   

The e-book is available at the official website of the Income Tax Department on https://www.incometaxindia.gov.in/Documents/Aarohan-itd-2022-e-book.pdf.

(Surabhi Ahluwalia)

Pr. Commissioner of Income Tax(OSD)

(Media & Technical Policy)

Official Spokesperson, CBDT