India has long been a nation where people have been attracted to gold as an asset class and this has been the trend from a long time. Indian households are estimated to be holding nearly $1 trillion worth of gold in the form of gold coins, bars and jewellery. Over the last two years the government has introduced the Gold Bonds scheme which enables investors to hold gold in dematerialized form avoiding the hassles that are prevalent in physical gold. How do you go about buying gold bonds in India? Are there any specific sovereign gold bonds tax benefits? What are the other unique benefits that are available to investors in these Sovereign Gold Bonds. Above all, is the interest on gold bonds taxable or tax free? All these issues put together will help you understand the benefits of buying gold bonds in India from the perspective of returns, liquidity and tax benefits. Here is how…