The rising concerns about inflation and stock market volatility are propelling a growing interest in gold investments, emphasizing the necessity for diversification, albeit accompanied by varying risk-reward dynamics and taxation implications across these options.
SGB 2023-24 Series III will be available for subscription from December 18 to December 22, with issuance on December 28. The issue price, based on the average closing price of gold, is yet to be announced by the RBI.
Even though the interest accrued on SGBs is subject to taxation, the capital gains exemption after eight years, coupled with the potential for long-term capital gains featuring indexation benefits, positions SGBs as a tax-efficient alternative when contrasted with other gold investments.