Image Source : PIXABAY The SGBs are transferable to any other eligible investor and can be gifted as well.
Sovereign Gold Bonds: Sovereign Gold Bonds or SGBs are government securities that let people invest in gold without the need to physically hold it. SGBs are issued by the Reserve Bank on behalf of the Government of India and are denominated in grams of gold.
Sovereign Gold Bonds: Is premature redemption allowed?
The tenor of the Sovereign Gold Bond is 8 years. However, early encashment or redemption is allowed after the fifth year from the date of issue on coupon payment dates.
The SGBs are transferable to any other eligible investor and can be gifted as well.
Sovereign Gold Bonds: Important dates for redemption
If you want to redeem your bonds, it is important to understand that they can be redeemed on the set dates. Also, there is a particular window during which an investor will have to raise a request for premature redemption. Here are the important dates that investors must know
Security Details
ISIN
Dates for submitting the request for
premature redemption by the investors
From Date
To Date
SGB 2019-20 SERIES X
IN0020190552
February 7, 2025
March 1, 2025
SGB 2019-20 Series IV
IN0020190115
February 15, 2025
March 7, 2025
On maturity, the Gold Bonds are redeemed in Indian Rupees and the redemption price shall be based on a simple average of the closing price of gold of 999 purity of the previous 3 business days from the date of repayment, published by the India Bullion and Jewelers Association Limited.
Sovereign Gold Bonds: Redemption amount
Both interest and redemption proceeds will be credited to the bank account provided by the investor at the time of buying the bond.
Sovereign Gold Bonds: How interest and capital gain are taxed?
The interest on gold bonds is taxable as per the provision of the Income Tax Act. The capital gains tax arising on redemption of SGB to an individual has been exempted.
Sovereign Gold Bond discontinued
Meanwhile, the union government has decided to stop the Sovereign Gold Bond (SGB) scheme. It has been confirmed by Finance Minister Nirmala Sitharaman confirmed. “Yes, in a way,” she said at a press briefing after the Budget on February 1, 2025.
