co-presented by
ASSOCIATE SPONSORS
co-presented by
ASSOCIATE SPONSORS
Investors holding bonds of these specific series should notify their bank or depository at least one month prior to the maturity date
Under the proposed changes, the exemption will apply only to investors who purchase the bond at its original issue price set by the RBI and hold it until maturity
As per the provisions of the Income-tax Act, 1961 (Section 43 of 1961) the interest on the SGBs is taxable. When an individual redeems these bonds, they are free from paying capital gains tax.
As per the provisions of the Income-tax Act, 1961 (Section 43 of 1961) the interest on the SGBs is taxable.
The price has been calculated based on the simple average of the closing price of gold of 999 purity for the previous three business days, as published by the India Bullion and Jewellers Association (IBJA).
It is worth noting that the redemption proceeds are paid in cash; no physical gold is delivered.
Accordingly, SGB 2017–18 Series XIV, which was issued on January 1, 2018, reaches its maturity on January 1, 2026, making it one of the first SGB tranches to be redeemed in the New Year.
With the final redemption price now at Rs 13,563, investors are looking at a capital appreciation of nearly 4.7 times over eight years.
The Central Bank said that the redemption price has been calculated based on the simple average of the closing price of gold of 999 purity for the previous three business days—December 15, 16 and 17, 2025—as published by the India Bullion and Jewellers Association (IBJA).
The RBI has fixed the redemption price at Rs 12,801 per unit, based on the simple average of 999-purity gold prices published by IBJA for December 8, 9 and 10.
The tranche, originally issued on December 11, 2017, completes its eight-year tenure this week in line with the Government of India’s notification under the SGB Scheme.
The bond, originally issued on December 10, 2019, can be exited early only on interest payment dates, as permitted under the Government of India’s 2019 notification on the SGB Scheme.
Investors who subscribed to this tranche can expect the proceeds to be credited to their bank accounts on the redemption date, offering them returns aligned with the strong performance of gold prices over the eight-year period.
Sovereign Gold Bond (SGB) 2017-18 Series IX had an issue price of Rs 2,964 per gram
Sovereign Gold Bond (SGB) 2020-21 Series-VIII bonds were originally issued on November 18, 2020 under the Government of India notification F.No.4(4)-B(W&M)/2020.
For this tranche, the average was calculated using gold prices from October 30, October 31, and November 3, 2025, resulting in the redemption rate of Rs12,039 per gram.
Sovereign Gold Bonds offer tax-free gains and steady income, but investors must weigh premature exit for liquidity requirement, or hold till maturity for maximum benefits.
Eligible investors will be able to redeem their bonds on October 30, 2025, marking five years since the bond's original issue date of October 30, 2019.
The Reserve Bank of India has announced that the premature redemption price for the Sovereign Gold Bond (SGB) 2020-21 Series-I, due on October 28, 2025, will be Rs 12,198 per unit.
Subscriptions for this 2019–20 Series-IV-Issue tranche were accepted from September 9–September 13, 2019. September 17, 2019 was the date of the bonds' issuance.
The Sovereign Gold Bond (SGB) scheme was introduced to steer Indian investors away from physical gold purchases and reduce the country's gold import bill. However, the government’s failure to hedge against rising gold prices has resulted in mounting liabilities, turning the SGB scheme into an expensive financial misstep.
Despite an allocation of Rs 18,500 crore for SGBs in the FY25 Budget – down from Rs 26,852 crore in the interim Budget – no new tranches of SGBs have been issued in the current fiscal.
Gold exchange-traded funds (ETFs) have become more appealing due to increased geopolitical risks, central bank policy changes, and volatility in the equity market
While experts are optimistic about gold’s outlook, buying Sovereign Gold Bonds at a premium to the reference rate could result in a capital loss if prices do not appreciate enough to offset the premium being quoted currently.
Experts say that while gold prices have gone up significantly, a lumpsum investment might be risky at this point, especially for short durations. But SIPs in gold funds can help you ride out the volatility.
