What are Sovereign Gold Bonds (SGBs)?

Government securities that are valued in grams of gold are known as Sovereign Gold Bonds (SGBs). They provide an alternative to holding actual gold (such as coins, bars, or jewellery) and are a distinctive and well-liked method of investing in gold in India.

SGBs are issued by the Reserve Bank of India (RBI) on behalf of the government and were introduced by the government of India in November 2015 as part of the Gold Monetization Scheme.

Can I pledge my SGBs as collateral?

It is possible to obtain loans from banks, financial institutions, or non-bank financial companies by using your Sovereign Gold Bonds (SGBs) as collateral.

Is TDS, or tax, applicable on interest or capital gains?

Sovereign Gold Bonds (SGBs) are subject to tax, but TDS (tax withdrawn at source) is not.