Can you tell me about the gold bond issue opening on 29 November?

The eighth tranche of the Sovereign Gold Bonds issue for FY22, will open on 29-November and close for subscription on 03-December. The government has been fixed the issue price for this tranche at Rs.4,791 per gram and there will be an additional discount of Rs.50 per gram for retail investors who use the digital mode of investment. The gold bonds will be sold by RBI through banks and post offices except through payment banks.

Gold bonds are guaranteed by the government in terms of principal and interest payment. The interest rate is fixed at 2.5% per year, payable semi-annually. Interest will be fully taxable in the hands of the investors. Capital gains will be treated as non-equity capital gains but there is a special benefit. If the bonds are held for the full tenure of 8 years, then such bonds are fully exempt from long term capital gains tax. This makes it a lot more attractive.