Prohibition of Benami Property Transactions Act, 1988

Press Information Bureau
Government of India
Ministry of Finance

28-October-2016 17:30 IST

Prohibition of Benami Property Transactions Act, 1988. 

Benami Property Transactions Act, 1988 has been amended by the Benami Transactions (Prohibition) Amendment Act, 2016 (BTP Amendment Act). The rules and all the provisions of the BTP Amendment Act shall come into force on 1^stNovember, 2016. After coming into effect of the BTP Amendment Act, the existing Benami Transactions (Prohibition) Act, 1988 shall be renamed as Prohibition of Benami Property Transactions Act, 1988 (PBPT Act).

2.         The PBPT Act defines benami transactions, prohibits them and further provides that violation of the PBPT Act is punishable with imprisonment and fine. The PBPT Act prohibits recovery of the property held benami from benamidar by the real owner. Properties held benami are liable for confiscation by the Government without payment of compensation.

3.         An appellate mechanism has been provided under the PBPT Act in the form of Adjudicating Authority and Appellate Tribunal. The Adjudicating Authority referred to in section 6(1) of the Prevention of Money Laundering Act, 2002 (PMLA) and the Appellate Tribunal referred to in section 25 of the PMLA have been notified as the Adjudicating Authority and Appellate Tribunal, respectively, for the purposes of the PBPT Act.

4.         A Joint / Additional Commissioner of Income-tax, an Assistant / Deputy Commissioner of Income-tax and a Tax Recovery Officer in each Pr. CCIT Region have been notified to perform the functions and exercise the powers of the Approving Authority, Initiating Officer and Administrator, respectively under the PBPT Act.

5.         All the notifications have been uploaded on the website of the Department at www.incometaxindia.gov.in.

                                                                                                           

            (Meenakshi Goswami)

                                                                                                Commissioner of Income Tax

         (Media & Technical Policy)

                   Official Spokesperson, CBDT 

Be my boss: Surat trader Savjibhai Dholakia to again gift his employees car and house as Diwali bonus

Savji Dholakia, a billionaire diamond merchant in Surat, has decided to gift 1,200 cars and 550 flats to his employees as Diwali bonus that will cost his company Rs 51 crore. The announcement was made at an informal meeting of Hare Krishna Exporters as part of the company's plan to mark its 25th year, which it will complete in two months.Last year, Dholakia's company had gifted 491 cars and 200 flats to its employees.The Diwali bonus recipients were shortlisted on the basis of their performance, said Kanak Patel, the company spokesperson.

The employees who will be given cars will have two options to choose from: Maruti Alto or Datsun.Move below to read Story in detailed

Those who get flats will have to pay no down payment. The company will pay their EMIs - Rs 5,000 a month for five years, the spokesperson said.

Savjibhai Dholakia, a Surat businessman who is the owner of Hare Krishna Exporters that trades in diamonds and textiles, has again decided to give employees at his firm car and a house as Diwali bonus.

FIRM EMPLOYS OVER 5,500 PEOPLEHare Krishna Exporters employs more than 5500 people. The company makes a annual turnover of Rs 6,000 crore.

As many as 1665 employees, who will be the beneficiaries, have been chosen based on their performance. Around 1200 of these 1665 employees earn between Rs 10,000 and Rs 60,000 per month.

The 400 employees, who are going to be given houses, will have to make no down-payment, which the company will take care of. Hare Krishna Exporters will pay a home loan EMI of Rs 5,000 for each of these workers for 5 years. Dholakia will also give away 1260 cars to its staff. As many as 56 employees will get jewellery boxes.

1,716 EMPLOYEES GOT BONUS LAST YEARThese 1665 employees did not avail the bonus last year when the company had given 491 cars, 200 houses and jewellery boxes to 1,716 of their colleagues. 

Savjibhai Dholakia is known as Savjikaka in Surat and Saurashtra.His story is a typical example of a man of modest means having gone on to carve a niche for himself. Savjibhai, who hails from Dudhala village in Amreli district, came to Surat in 1977 on a state transport bus with just Rs 12.5 with him as ticket fare.

2% DA Calculation for Pay Scale 5200 to 20200: 7th Pay Commission

Want to calculate DA for your current pay scale as per 7th pay commission? Then given below table entitled 2% DA Calculation for Pay Scale 5200 to 20200: 7th Pay Commission will show 2% DA calculation after DA hike announced by central government recently. This DA is affected from 01 July 2016. So you have to calculate your revised salary as per 7th CPC with two percentage DA hike from July 2016. This calculation is given in below table.

2% DA Calculation for Pay Scale 5200 to 20200: 7th Pay Commission

Pay Matrix DA Calculation Table for Level 1 to 5, With Effect From 01-07-2016

PAY MATRIX DA TABLE W.E.F. 1.7.2016
	Level – 1 (1800GP)		Level – 2 (1900GP)		Level – 3 (2000GP)		Level – 4 (2400GP)		Level – 5 (2800GP)
	Basic Pay	2% DA	Basic Pay	2% DA	Basic Pay	2% DA	Basic Pay	2% DA	Basic Pay	2% DA
1	18000	360	19900	398	21700	434	25500	510	29200	584
2	18500	370	20500	410	22400	448	26300	526	30100	602
3	19100	382	21100	422	23100	462	27100	542	31000	620
4	19700	394	21700	434	23800	476	27900	558	31900	638
5	20300	406	22400	448	24500	490	28700	574	32900	658
6	20900	418	23100	462	25200	504	29600	592	33900	678
7	21500	430	23800	476	26000	520	30500	610	34900	698
8	22100	442	24500	490	26800	536	31400	628	35900	718
9	22800	456	25200	504	27600	552	32300	646	37000	740
10	23500	470	26000	520	28400	568	33300	666	38100	762
11	24200	484	26800	536	29300	586	34300	686	39200	784
12	24900	498	27600	552	30200	604	35300	706	40400	808
13	25600	512	28400	568	31100	622	36400	728	41600	832
14	26400	528	29300	586	32000	640	37500	750	42800	856
15	27200	544	30200	604	33000	660	38600	772	44100	882
16	28000	560	31100	622	34000	680	39800	796	45400	908
17	28800	576	32000	640	35000	700	41000	820	46800	936
18	29700	594	33000	660	36100	722	42200	844	48200	964
19	30600	612	34000	680	37200	744	43500	870	49600	992
20	31500	630	35000	700	38300	766	44800	896	51100	1022
21	32400	648	36100	722	39400	788	46100	922	52600	1052
22	33400	668	37200	744	40600	812	47500	950	54200	1084
23	34400	688	38300	766	41800	836	48900	978	55800	1116
24	35400	708	39400	788	43100	862	50400	1008	57500	1150
25	36500	730	40600	812	44400	888	51900	1038	59200	1184
26	37600	752	41800	836	45700	914	53500	1070	61000	1220
27	38700	774	43100	862	47100	942	55100	1102	62800	1256
28	39900	798	44400	888	48500	970	56800	1136	64700	1294
29	41100	822	45700	914	50000	1000	58500	1170	66600	1332
30	42300	846	47100	942	51500	1030	60300	1206	68600	1372
31	43600	872	48500	970	53000	1060	62100	1242	70700	1414
32	44900	898	50000	1000	54600	1092	64000	1280	72800	1456
33	46200	924	51500	1030	56200	1124	65900	1318	75000	1500
34	47600	952	53000	1060	57900	1158	67900	1358	77300	1546
35	49000	980	54600	1092	59600	1192	69900	1398	79600	1592
36	50500	1010	56200	1124	61400	1228	72000	1440	82000	1640
37	52000	1040	57900	1158	63200	1264	74200	1484	84500	1690
38	53600	1072	59600	1192	65100	1302	76400	1528	87000	1740
39	55200	1104	61400	1228	67100	1342	78700	1574	89600	1792
40	56900	1138	63200	1264	69100	1382	81100	1622	92300	1846

Before implementation of seventh pay commission, 6% DA hike is given by central government and DA reaches 125% of your basic salary. But at the time of implementation of 7th pay commission, panel of 7th pay commission has merged DA with basic pay and make pay matrix table with fitment factor 2.57. You have to multiply 2.57 in to your basic salary as on December 2015. After multiplication of Fitment factor your new initial salary as per 7th pay commission is calculated.

Example 1: As shown in table, if your pay scale is Rs. 5200 to Rs. 20200 and Grade Pay is Rs. 1800 and your basic as per 7th CPC is Rs. 18000 then your 2% DA will be Rs. 360.

Example 2: If your basic / initial pay scale is 29200 as per 7th CPC, then 2% DA will be Rs. 584.As per example you can check your 2% DA Calculation for Pay Scale 5200 to 20200 with different grade pay.

More About DA in 7th Pay Commission: As per formula and suggestion of panel headed by justice A K Mathur government increases DA on the bases of 12 month average of retail inflation. 12-month average of Consumer Price Index for Industrial Workers from 1 July 2015 to 30 June 2016, works out to be 2.92%. So Unions of central government employee want that DA should be increased by 3% not 2%. They demand 3% hike in DA. But government has approved only 2% increment in this allowances.

How does NREGA Payment work in IPPB using Biometric Device

The workers’ remuneration will be credited to their respective Aadhaar lined IPPB accounts. The beneficiary can withdraw the money using biometric device even without filling a withdrawal form.

What is Voice Banking Service in India Post Payment Bank (IPPB)

India Post Payment Bank (IPPB) gives the facility for its customers especially in rural areas to deposit or withdraw the money from their IPPB account without going to the IPPB branch. The Postman will operate the accounts with help of bio metric device at the door step of customers. Watch the two videos below for better understanding.

IPPB operation through Postman

ndia Post Payment bank gives the facility for its customers especially in rural areas to deposit or withdraw the money from their IPPB account without going to the IPPB branch. The Postman will operate the accounts with help of bio metric device at the door step of customers.

AIAPC wishes you a Happy Diwali!

AIAPC wishes Happy & Prosperous to its viewers!!!

BSNL plans to cut thousands of jobs next year

NEW DELHI: State-owned Bharat Sanchar Nigam Ltd will reduce its workforce by nearly 7% in 2017-18, from the employee-base of 2,09,996 in 2016-17.

BSNL expects total employees as on April 30, 2017, to be 1,96,162, the state-driven telco said in response to an application filed under the Right to Information Act, 2005.

The workforce phase out is part of employees attaining retirement age, which according to the service provider would eventually help in bringing it back into the black in the following year.

"Nearly 10% staff goes off the rolls every year as they achieve retirement. We are not filling up new positions and it could eventually help us in increasing operational profit," BSNL chairman Anupam Shrivastava had earlier told ET. Backed by steady reduction in staff costs, land monetization scheme, tower and spectrum assets sharing, the PSU aims to turn into a profit-making business by 2018-19, according to the top executive.

The VRS (voluntary retirement scheme) proposal aimed at bringing down headcount is however on hold, according to Shrivastava.

Of the 22 telecom circles, Andhra Pradesh has the highest number of 22,000 PSU employees.

BSNL, when compared to private sector competitors, has a mammoth outgo of more than 50% of its annual revenue towards meeting salary expenses of its staff. In 2015-16, the telecom company spent nearly Rs 15,000 crore in salary disbursements.

Rival companies including Sunil Mittal's Bharti Airtel, Aditya Birla group's Idea Cellular and UK-based Vodafone India unit spend a mere 5% to 6% on staff salaries.

Market leader Bharti Airtel has around 20,000 employees across India while the country's second-largest telco Vodafone India has an employee base of little over 13,000.

BSNL posted an Rs 8,234 crore loss in 2014-15, highest among all public-sector companies for that year, followed by Air India's Rs 5,860 crore loss.

Solution for frequent disable of SBCO user IDs at every morning automatically in DOP Finacle

MIS report URL login depends on yesterday login status of the user in Finacle production.

If User failed to login in Finacle production consecutively for 7 days, user ID will be disabled automatically .

• 
  Similarly password will be expired after 15 days , in case password is not changed .
• These are the security feature enabled in Finacle
• MIS server DB refresh is being done on daily basis. Status of user is also getting refreshed in MIS Server based on Finacle production data. If the status of user ID is in disabled / locked / password expired in Finacle Production, the same same will be reflected in MIS server after MID DB refresh 
• It is observed that some of the SBCO users are not logged in Finacle production consecutively for 7 days , but trying to login MIS report server.

As status of user is disabled in production after 7 days, the same is being reflected in MIS due to daily DB refresh activity and hence user unable to login MIS . 

For example, today if status of user is disabled in Finacle production, user ID status in MIS will also be changed to disabled after refresh of MIS DB which is being happened during every day night after DC closure.

That is why , even though status of user is enabled today in MIS , the same will be shown as disabled in MIS after MIS DB refresh in case the user is disabled in production . 

• Suppose user is enabled in production today, the same will be automatically reflected in MIS server after tonight DB refresh, without making any changes in MIS server
• So, please educate the users to login in production at least once in a week and change password within 15 days so that both Finacle production and MIS login issues may be avoided

How does NREGA Payment work in IPPB using Biometric Device

The workers’ remuneration will be credited to their respective Aadhaar lined IPPB accounts. The beneficiary can withdraw the money using biometric device even without filling a withdrawal form. Following video will give you clear picture about NREGA wage disbursement through IPPB account.

"Committee on allowance ready with report"

Media Report : "Committee on allowance ready with report"

Government employees might have an exciting new year as the Committee on Allowances under the chairmanship Finance Secretary Ashok Lavasa is ready with its reports.

Media reports said that the committee is likely to submit the reports on revised allowance to Finance Minister Arun Jaitley very soon.

Quoting sources in the Finance Ministry, media reports said that the committee is waiting to be called by Jaitley for submission of its reports.

LANDMARK JUDGMENT BY SUPREME COURT FOR PAYMENT OF “EQUAL PAY FOR EQUAL WORK” TO THE DAILY WAGE EMPLOYEES, ADHOC APPOINTEES, EMPLOYEES APPOINTED ON CASUAL BASIS, CONTRACTUAL EMPLOYEES AND THE LIKE.

The Hon’ble Supreme Court in its Historical 102 pages Judgment in Civil Appeal No. 2013 of 2013 dated 26.10.2016 has directed that Temporary Employees, Adhoc Appointees, employees appointed on Casual basis, contractual employees and the like, if the concerned employees are rendering similar duties and responsibilities as were being discharged by regular employees holding the same/corresponding posts are entitled “for equal pay for equal work” such employees are entitled for draw wages at the minimum of the payscale extended to regular employees holding the same posts. We will be representing to the Govt. To implement this Judgment and issue a common order in this regard. Full judgement is reproduced below:

CLICK HERE TO VIEW – SUPREME COURT JUDGMENT ON EQUAL PAY FOR EQUAL WORK

Sensational Judgement By Supreme Court. Red Salute. No More Exploitation of Human Work.

In a big relief to lakhs temporary employee who have been hired by government departments and agencies across the country on contractual basis, the Supreme Court on Wednesday held that they are entitled to wages at par with permanent employees and principle of 'equal pay for equal work' must be followed.

A bench of Justices JS Khehar and SA Bobde said the principle of 'equal pay for equal work' constitutes a clear and unambiguous right vested in every employee whether engaged on regular or temporary basis. "In our considered view, it is fallacious to determine artificial parameters to deny fruits of labour. 

An employee engaged for the same work, cannot be paid less than another, who performs the same duties and responsibilities. Certainly not, in a welfare state. Such an action besides being demeaning, strikes at the very foundation of human dignity," the bench said.

The bench said the principle had been expounded through a large number of judgments rendered by theapex court and and constitutes law declared by the Supreme Court. "Any one, who is compelled to work at a lesser wage, does not do so voluntarily. He does so, to provide food and shelter to his family, at the cost of his self respect and dignity, at the cost of his self worth, and at the cost of his integrity. For he knows, that his dependents would suffer immensely, if he does not accept the lesser wage," Justice Khehar, who wrote the judgement, said. "

Any act, of paying less wages, as compared to others similarly situate, constitutes an act of exploitative enslavement, emerging out of a domineering position. Undoubtedly, the action is oppressive, suppressive and coercive, as it compels involuntary subjugation," he said.

The court passed the verdict on a bunch of petition filed by tempoary employee working for state of Punjab seeking wage parity with regular employee. They approached the apex court after Punjab and Haryana High Court held that temporary employees were not entitled to the minimum of the regular pay-scale, merely for reason, that the activities carried on by them and the regular employees were similar.

Setting aside the HC order, the apex court held that the principle of equal pay for equal work must be followed in the country as India was a signatory of International Covenant on Economic, Social and Cultural Rights. "India is a signatory to the covenant, having ratified the same on April 10, 1979. There is no escape from the above obligation, in view of different provisions of the Constitution and in view of the law declared by this court under Article 141 of the Constitution of India, the principle of 'equal pay for equal work' constitutes a clear and unambiguous right and is vested in every employee - whether engaged on regular or temporary basis,"it said.

COURTESY - THE TIMES OF INDIA.

Directorate Supply of 13,500 Laser Printers to Post Offices

Know Your Customer (KYC) Requirements relating to PLI/RPLI to be followed by the CPC/POs

Interview for CEO & MD of India Post Payment Bank on Nov 11

Press Trust of India | New Delhi October 26, 2016

Banks Board Bureau (BBB) will conduct interviews on November 11 for CEO and MD of India Post Payment Bank that plans to begin operation from next year. 

"BBB is scheduled to take interview on November 11," sources said.

The Postal Department has laid the criteria of minimum 15 years of experience in financial services and age between 40 - 55 years for prospective candidates. 

Last year, India Post received in-principle approval from RBI and subsequently nod from the Cabinet for setting up the payment bank. 

India Post's payments bank with 650 branches is expected to start functioning from September 2017. There are 1.54 lakh post offices, of which 1.39 lakh are rural ones. 

The total asset of postal payments bank is Rs 800 crore, which will have Rs 400 crore equity and Rs 400 crore grant. 

India Post Payment Bank (IPPB) last month received certificate of incorporation from the Registrar of Companies, setting the stage for the new bank to begin operations during 2017. 

IPPB aims to become the most accessible bank in the world, riding on advanced banking and payments technology. 

Coupled with physical presence across 1.55 lakh post offices and the reach of the postman, it plans to become a powerful and effective vehicle of real financial inclusion in the country.

Source : http://www.business-standard.com

Women employees can now file harassment complaints online:Govt

Press Trust of India | New Delhi October 26, 2016

The women employees of the Central government will soon be able to file sexual harassment complaints online. 

The decision was taken at a meeting called by Women and Child Development (WCD) Minister Maneka Gandhi today after she received complaints from aggrieved women employees from various ministries.

Officials from Department of Personnel and Training (DoPT), Ministry of Home Affairs (MHA), Railway Ministry, Sports Ministry and Department of Financial Services were present at the meeting. 

The e-platform for posting complaints will be hosted on the Women and Child Development ministry's website, a senior official said, adding the complaints will then be taken up with the respective ministries/departments. 

An inter-ministerial committee headed by a senior WCD official will be constituted to review the status of the complaints. The forum will also ensure that all Internal Complaints Committee (ICC) heads are imparted training on how to resolve such complaints, he said. 

It has also been decided that the DoPT will issue instructions to ensure that training programmes for all services include a module on Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 to sensitise the government staff. 

Additionally, the WCD ministry will issue guidelines for dealing with sexual harassment complaints. These will include a monthly as well as an annual report, to be prepared by the Internal Complaints Committee of each ministry, on the status of complaints received. 

The cadre controlling authority of a victim will be required to monitor her progress for 5 years, in order to ensure that she is not further tormented for complaining against a colleague, the official said. 

A similar exercise for the private sector is also on the anvil, he added. 

The move comes after several women employees wrote to the WCD ministry about delay in getting their complaints about sexual harassment resolved.

Source : http://www.business-standard.com

Posters For Sovereign Gold Bond

Dear Friends,

Just now we came to know that everyone are feeling the pressure of selling sovereign gold bonds. So in order to help you improve the sales we are giving you two posters which you can print and display in your office.

Since it is diwali time people will be very much interested in buying gold. So if we can convince them to buy gold bonds we can achieve our targets.

Lets make this a huge success. All the best.

Also read: 36 Things You Should Know About Sovereign Gold Bond

Just right click on the image below and click on Save Image to download the posters

Poster 1

After DA, Central Govt Employees Now In Wait For Fatter Allowances

The central government today announced 2 per cent dearness allowance, benefiting its 48 lakh central government employees and 52 lakh pensioners, in a bid to ease the inflationary pressure.

All eyes of central government employees are now on ‘Committee on Allowances’, which will take a final decision in fatter allowances under the 7th Pay Commission recommendations.

The increasing of Dearness Allowance (DA) of central government employees and officials were not helpful for maintaining their living standard, Finance Ministry’s official said on Thursday.

They also said fatter allowances under the 7th Pay Commission recommendations should implement which would give them some financial comfort, a step they had hoped might be taken within weeks.

Sources in the Prime Minister’s Office (PMO) said the government may make a formal announcement on higher allowance after obtaining feedback from Finance Ministry.

They also said the Finance Minister Arun Jaitley had initially appointed ‘Committee on Allowances’ headed by Finance Secretary Ashok Lavasa on July 22 for examination of the recommendations of 7th Pay Commission on allowances other than dearness allowance and asked to submit its report with in four months.

The pay commission had recommended abolition of 51 allowances and subsuming 37 others out of 196 allowances. So, there was resentment among employees over suggestions to scrap some allowances.

The Pay Commission recommended overall increase in allowances by 63 per cent.

The Finance Secretary Ashok Lavasa recently said, “A committee headed by me is currently examining the Pay Commission’s recommendations on allowances and it will submit its report soon.

“The cabinet is likely to approve the proposal of committee on allowances and the higher allowances will be implemented with retrospective effect from August 2016 but the central government employees unions demanded for implementation of the allowances with retrospective effect from January 2016,” the sources confirmed.

“Moreover, arrears for higher allowances will be paid from August,” the source assured.

However, the central government employees’union expressed its resentment over the non-formation of High Level Committee for reviewing the minimum pay and allowances and say they must lead their march to Parliament on December 15 against non-formation of High Level Committee.

The central government employees and pensioners got theirs arrears of basic pay and pension arising from implementation of the 7th Pay Commission recommendations in one go in August salaries and pension respectively. The hike in basic pay and pension has been made effective from January 1, 2016.

TST

36 Things You Should Know About Sovereign Gold Bond

1. What is Sovereign Gold Bond (SGB)? Who is the issuer?

SGBs are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. The Bond is issued by Reserve Bank on behalf of Government of India.

2. Why should I buy SGB rather than physical gold? What are the benefits?

The quantity of gold for which the investor pays is protected, since he receives the ongoing market price at the time of redemption/ premature redemption. The SGB offers a superior alternative to holding gold in physical form. The risks and costs of storage are eliminated. Investors are assured of the market value of gold at the time of maturity and periodical interest. SGB is free from issues like making charges and purity in the case of gold in jewellery form. The bonds are held in the books of the RBI or in demat form eliminating risk of loss of scrip etc.

3. Are there any risks in investing in SGBs?

There may be a risk of capital loss if the market price of gold declines. However, the investor does not lose in terms of the units of gold which he has paid for.

4. Who is eligible to invest in the SGBs?

Persons resident in India as defined under Foreign Exchange Management Act, 1999 are eligible to invest in SGB. Eligible investors include individuals, HUFs, trusts, universities, charitable institutions, etc.

5. Whether joint holding will be allowed?

Yes, joint holding is allowed.

6. Can a Minor invest in SGB?

Yes. The application on behalf of the minor has to be made by his/her guardian.

7. Where can investors get the application form?

The application form will be provided by the issuing banks/SHCIL offices/designated Post Offices/agents. It can also be downloaded from the RBI’s website. Banks may also provide online application facility.

8. What are the Know-Your-Customer (KYC) norms?

Know-Your-Customer (KYC) norms will be the same as that for purchase of physical form of gold. Identification documents such as Aadhaar card/PAN or TAN /Passport / Voter ID card will be required. KYC will be done by the issuing banks/SHCIL offices/Post Offices/agents. No separate KYC will be needed for receiving bank’s own customers.

9. What is the minimum and maximum limit for investment?

The Bonds are issued in denominations of one gram of gold and in multiples thereof. Minimum investment in the Bond shall be one gram with a maximum buying limit of 500 grams per person per fiscal year (April – March). In case of joint holding, the limit applies to the first applicant.

10. Can I buy 500 grams in the name of each of my family members?

Yes, each family member can buy the bonds in his/her own name if they satisfy the eligibility criteria as defined at Q No.4.

11. Can I buy 500 grams worth of SGB every year?

Yes. One can buy 500 grams worth of gold every year as the ceiling has been fixed on a fiscal year (April-March) basis.

12. What is the rate of interest and how will the interest be paid?

The Bonds bear interest at the rate of 2.75 per cent (fixed rate) per annum on the amount of initial investment. Interest will be credited semi-annually to the bank account of the investor and the last interest will be payable on maturity along with the principal.

13. Who are the authorized agencies selling the SGBs?

Bonds are sold through scheduled commercial banks (excluding RRBs), SHCIL offices and designated Post Offices either directly or through their agents.

14. If I apply, am I assured of allotment?

If the customer meets the eligibility criteria, produces a valid identification document and remits the application money on time, he/she will receive the allotment.

15. When will the customers be issued Holding Certificate?

The customers will be issued Certificate of Holding on the date of issuance of the SGB. Certificate of Holding can be collected from the issuing banks/SHCIL offices/Post Offices/agents or obtained directly from RBI on email, if email address is provided in the application form.

16. Can I apply online?

Yes. A customer can apply online through the website of the listed scheduled commercial banks.

17. At what price the bonds are sold?

Price of bond will be fixed in Indian Rupees on the basis of the previous week’s (Monday – Friday) simple average price for gold of 999 purity published by the India Bullion and Jewellers’ Association Ltd. (IBJA). The issue price will be disseminated by the Reserve Bank of India

18. Will RBI publish the rate of gold applicable every day?

The price of gold for the relevant tranche will be published on RBI website two days before the issue opens.

19. What will I get on redemption?

On maturity, the redemption proceeds will be equivalent to the prevailing market value of grams of gold originally invested in Indian Rupees. The redemption price will be based on the simple average of previous week’s (Monday-Friday) closing gold price for 999 purity published by the IBJA.

20. How will I get the redemption amount?

Both interest and redemption proceeds will be credited to the bank account furnished by the customer at the time of buying the bond.

21. What are the procedures involved during redemption?

• The investor will be advised one month before maturity regarding the ensuing maturity of the bond.
• On the date of maturity, the maturity proceeds will be credited to the bank account as per the details on record.
• In case there are changes in any details, such as, account number, email ids, then the investor must intimate the bank/SHCIL/PO promptly.

22. Can I encash the bond anytime I want? Is premature redemption allowed?

Though the tenor of the bond is 8 years, early encashment/redemption of the bond is allowed after fifth year from the date of issue on coupon payment dates. The bond will be tradable on Exchanges, if held in demat form. It can also be transferred to any other eligible investor.

23. What do I have to do if I want to exit my investment?

In case of premature redemption, investors can approach the concerned bank/SHCIL offices/Post Office/agent thirty days before the coupon payment date. Request for premature redemption can only be entertained if the investor approaches the concerned bank/post office at least one day before the coupon payment date. The proceeds will be credited to the customer’s bank account provided at the time of applying for the bond.

24. Can I gift the bonds to a relative or friend on some occasion?

The bond can be gifted/transferable to a relative/friend/anybody who fulfills the eligibility criteria (as mentioned at Q.no. 4). The Bonds shall be transferable in accordance with the provisions of the Government Securities Act 2006 and the Government Securities Regulations 2007 before maturity by execution of an instrument of transfer which is available with the issuing agents.

25. Can I use these securities as collateral for loans?

Yes, these securities are eligible to be used as collateral for loans from banks, financial Institutions and Non-Banking Financial Companies (NBFC). The Loan to Value ratio will be the same as applicable to ordinary gold loan prescribed by RBI from time to time.

26. What are the tax implications on i) interest and ii) capital gain?

Interest on the Bonds will be taxable as per the provisions of the Income-tax Act, 1961 (43 of 1961). The capital gains tax arising on redemption of SGB to an individual has been exempted. The indexation benefits will be provided to long terms capital gains arising to any person on transfer of bond.

27. Is tax deducted at source (TDS) applicable on the bond?

TDS is not applicable on the bond. However, it is the responsibility of the bond holder to comply with the tax laws.

28. Who will provide other customer services to the investors after issuance of the bonds?

The issuing banks/SHCIL offices/Post Offices/agents through which these securities have been purchased will provide other customer services such as change of address, early redemption, nomination, grievance redressal, transfer applications etc.

29. What are the payment options for investing in the Sovereign Gold Bonds?

Payment can be made through cash (upto Rs. 20000)/cheques/demand draft/electronic fund transfer.

30. Whether nomination facility is available for these investments?

Yes, nomination facility is available as per the provisions of the Government Securities Act 2006 and Government Securities Regulations, 2007. A nomination form is available along with Application form.

31. Is the maximum limit of 500 gms applicable in case of joint holding?

The maximum limit will be applicable to the first applicant in case of a joint holding for that specific application.

32. Are institutions like banks allowed to invest in Sovereign Gold Bonds?

There is no bar on investment by banks in Sovereign Gold Bonds. These will qualify for SLR.

33. Can I get the bonds in demat form?

• Yes. The bonds can be held in demat account. A specific request for the same must be made in the application form itself.
• Till the process of dematerialization is completed, the bonds will be held in RBI’s books. The facility for conversion to demat will also be available subsequent to allotment of the bond.

34. Can I trade these bonds?

The bonds are tradable from a date to be notified by RBI. (It may be noted that only bonds held in de-mat form with depositories can be traded in stock exchanges) The bonds can also be sold and transferred as per provisions of Government Securities Act, 2006

35. Can I get part repayment of these bonds at the time of exercising put option?

Yes, part holdings can be redeemed in multiples of one gm.

36. How do I contact RBI to address my queries regarding Sovereign Gold Bond ?

A dedicated e-mail has been created by the Reserve Bank of India to receive queries from members of public on Sovereign Gold Bonds. Investors can mail their queries to this email id.