RBI Stops 8 percent GoId Savings Bonds Scheme

Gold Jewelry - provisional release - Delhi HC - Taxscan

In a Notification issued today, the Reserve Bank of India (RBI) notified that the 8 percent GoId Savings (Taxable) Bonds, 2003 as per Notification F.4(10)-W&M/2003, dated March 21, 2003 shall cease for subscription with effect from the close of business on Tuesday, the 2nd January, 2018.

GoId Savings (Taxable) Bonds, 2003 is a government bond with eight per cent interest issued through the State Bank of India and its associates, other nationalized banks and some private sector banks such as HDFC Bank Ltd and ICICI Bank Ltd, etc. The bonds can be bought from the offices of Stock Holding Corporation of India as well.

They are available in physical form only and are not listed or tradable on stock exchanges. The minimum investment amount is Rs1,000 (face value of one bond) and there is no maximum limit of investment. The interest received from these bonds is taxable, at the marginal rate of income tax you are liable to pay. Tax is deducted at source if your total interest exceeds Rs10,000.

The scheme was treated as one of a tool for saving tax.

Though the scheme was introduced in 2003, it was recalled due to lower response from the investors. In 2017, RBI re-introduced the same.

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