[thanixravindran]

Originally Posted by HighOnSpeed

Can someone with proper knowledge help me understand whether SGBs bought in the secondary market are also eligible for tax-free redemption upon maturity, even if the holding tenure is less than eight years? For instance, let us assume I purchased SGBAPR28I(maturity April 2028) today, so my holding period would be four years. Would the potential capital gain that may arise be tax-free in this case? I consulted several experts and most of them believe that it would indeed be tax-free, but I didn't get any meaningful response from the RBI helpdesk when I contacted them, hence the ambiguity. The first lots of the SGBs issued were just recently extinguished, but I purchased the same from the direct allotment, so I was unable to corroborate it.

Yes, the wording is 'maturity' for it to be tax free irrespective of how one purchased it - either primary purchase or purchased in secondary market. It is just a bond once held to maturity date as per the bond date and bearer of the bond on maturity date becomes tax free at the hands of bearer.

[thanixravindran]

Originally Posted by Naetik30

I bought SGB 2016-17 Series 1 (August 2016). I saw recent news articles that this particular one matures on February 8, 2024. I bought this through HDFC Bank account and I am yet to get any credit for this SGB maturity and unable to find how to get this.

This was my first SGB investment and not very clear. Any one has any details on this?

SGB maturity is at 8 years and if it is August 2016, the maturity will be on August 2024. I am not sure how you calculated it as Feb 2024. When I started investing, I read that it will be credited to the original bank account which is the same used for receiving SGB interest. This means I should not close that bank account inadvertently as there is no clarity on changing a bank account in SGB in RBI website.

[Naetik30]

Originally Posted by thanixravindran

SGB maturity is at 8 years and if it is August 2016, the maturity will be on August 2024. I am not sure how you calculated it as Feb 2024. When I started investing, I read that it will be credited to the original bank account which is the same used for receiving SGB interest. This means I should not close that bank account inadvertently as there is no clarity on changing a bank account in SGB in RBI website.

I had the same doubt. But saw multiple news reports that the maturity is on feb 8, 2024 for the Series 1 2016-2017 bond. Really confusing.

[kavensri]

I do not know if my query belongs to this thread or some other one.
I am planning to close my sharekhan demat account. I have sold all the stocks that I had in that account. I had brought SGB in 2021 and that is also linked to my demat account. I don't know how it got linked as I do not remember linking it manually.
Now my question is, can i still go ahead and close my demat account without encashing my SGB? If so, I hope i will not face any issue when the tenure of my SGB closes in 2029 and when I try to encash it?

[WDM007]

SGB Interest not credited

I have purchased SGB bonds in 2021 and 2022 from Zerodha. It is linked to my back account. As per the RBI policy, SGB interest should get deposited to my bank account twice every year.

However, I have not got the interest for any of the bond series deposited, in last few years.

I raised a complaint with Zerodha, but they closed ticket mentioning that I need to follow up with CDSL. Same was the answer from bank also.

CDSL support is pathetic and there is no response.

Has anyone else also faced the same issues? Any way to get it resolved? Pelase let me know.

[HappyWheels]

Originally Posted by WDM007

SGB Interest not credited...

Just checked my account and facing the same issue. This is with HDFC Demat account and whose support is none the better.

[uchun]

I've started investing a tiny portion on SGB lately.

I found a really nice website to keep track of the tranches.

sgb.vercel.app

[deathwalkr]

Originally Posted by WDM007

SGB Interest not credited

I get mine credited as from National Depository etc etc. Check your SGB date and refer your statement post 6 months.

Sorry if you have already checked that.

[vaibhav_a_a]

Originally Posted by kavensri

I do not know if my query belongs to this thread or some other one.
I am planning to close my sharekhan demat account. I have sold all the stocks that I had in that account. I had brought SGB in 2021 and that is also linked to my demat account. I don't know how it got linked as I do not remember linking it manually.
Now my question is, can i still go ahead and close my demat account without encashing my SGB? If so, I hope i will not face any issue when the tenure of my SGB closes in 2029 and when I try to encash it?

This is a good question. If you do not plan to sell or prematurely redeem the SGBs, ideally, you should be OK as long as the original bank account mapped to the SGBs is open and the IFSC code does not change (trust me, the IFSC code change for bank branches does happen, in case of branch merger into another, typically larger branch). However if you only close the demat and broker acct you'd have no way of knowing where the SGBs are though the RBI will keep a record of your SGBs in their books.

If you plan to transfer them to another broker then you'd have to remat them and then demat them as well. Here comes the cost factor - The SGBs are demat'd and remat'd on a per-scrip basis. AFAIK each series of SGB (irrespective of quantity) gets treated as one scrip - so if you have 50 units of 29 maturity it would be one scrip (I think remat is like 150/- inr per scrip or so but please check). If you had another say 10 units of 30 maturity it would be another scrip.

Have you tried contacting the RBI retail direct support line on this? I'd be interested in what you find as I decided against the entire remat demat exercise and remained stuck with SK

Originally Posted by vaibhav_a_a

This is a good question. If you do not plan to sell or prematurely redeem the SGBs, ideally, you should be OK as long as the original bank account mapped to the SGBs is open and the IFSC code does not change (trust me, the IFSC code change for bank branches does happen, in case of branch merger into another, typically larger branch). However if you only close the demat and broker acct you'd have no way of knowing where the SGBs are though the RBI will keep a record of your SGBs in their books.

If you plan to transfer them to another broker then you'd have to remat them and then demat them as well. Here comes the cost factor - The SGBs are demat'd and remat'd on a per-scrip basis. AFAIK each series of SGB (irrespective of quantity) gets treated as one scrip - so if you have 50 units of 29 maturity it would be one scrip (I think remat is like 150/- inr per scrip or so but please check). If you had another say 10 units of 30 maturity it would be another scrip.

Have you tried contacting the RBI retail direct support line on this? I'd be interested in what you find as I decided against the entire remat demat exercise and remained stuck with SK

I think you'd need to remat them if you plan to just close the broker and demat account. Then the SGBs would stay in RBI books. Rest should be same as above.

On another point, several older posts in this thread theorize that gold prices were rising during covid as US interest rates were low and that they would fall once US interest rates start rising. This clearly hasn't happened. Partially due to central bank purchases (China, notably but also Russia and RBI) but am curios to hear if any other explanations.

[Kar_Om]

Originally Posted by WDM007

SGB Interest not credited

I have attached herewith link for FAQ section regarding SGB from RBI Website: https://www.rbi.org.in/Scripts/FAQView.aspx?Id=109

In Question 37, there is an email ID provided where general public can mail there queries to RBI regarding SGB. Try sending mail to this email ID and see if you get response from them for your situation or alternatively you can use "Contact Us" section from RBI website.

[Fx14]

Originally Posted by vaibhav_a_a

If you plan to transfer them to another broker then you'd have to remat them and then demat them as well. Here comes the cost factor - The SGBs are demat'd and remat'd on a per-scrip basis.

I'd be interested in what you find as I decided against the entire remat demat exercise and remained stuck with SK.

Why would you not transfer it to your other demat account via an off market transfer DIS instead?

[m2maddy]

If one sells an old gold jewellery, do we have to pay GST of 3%?
Also, if we buy another gold on-top of this, adding extra amount, is the GST for full amount or just the amount difference?

The jeweller is saying he will give the amount -3% only.

[thanixravindran]

Originally Posted by m2maddy

If one sells an old gold jewellery, do we have to pay GST of 3%?
Also, if we buy another gold on-top of this, adding extra amount, is the GST for full amount or just the amount difference?

The jeweller is saying he will give the amount -3% only.

I don't think selling old gold jewellery attracts GST. Check this article
https://cleartax.in/s/gst-impact-on-gold

Your second case is like exchange scheme. I am not sure gold exchange attracts GST. Please visit to a reputed jeweller like Tanishq to check.

[Fx14]

Originally Posted by kavensri

Now my question is, can i still go ahead and close my demat account without encashing my SGB?

Closure of the demat account can be done only if there is NIL holdings - in your case, after either transferring the existing holdings to another demat account or remating them.

[m2maddy]

Originally Posted by thanixravindran

I don't think selling old gold jewellery attracts GST. Check this article
https://cleartax.in/s/gst-impact-on-gold

Your second case is like exchange scheme. I am not sure gold exchange attracts GST. Please visit to a reputed jeweller like Tanishq to check.

Thanks, will talk to the jeweller and check once.