SGB Returns: Gold Bond Yields 193% for Investors; Premature Redemption Window Opens Tomorrow; Is It Taxable? – News18
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The RBI announced the premature redemption schedule for SGB tranches maturing between March and September 2025. The SGB 2016-17 Series IV redemption price is set at Rs 8,624 per unit.
Sovereign Gold Bonds (SGB) Premature Redemption: RBI releases the calendar
SGB: The Reserve Bank of India (RBI) has announced the premature redemption schedule for specific Sovereign Gold Bond (SGB) tranches maturing between March 2025 and September 2025. Investors holding the first tranche of the SGB 2017-18 Series III can opt for premature redemption on March 17, 2025. Redemption requests must be submitted between March 17, 2025, and April 7, 2025.
Redemption of SGB 2016-17 Series IV
The RBI has set the redemption price for the SGB 2016-17 Series IV at Rs 8,624 per unit. This tranche, issued on March 17, 2017, will reach maturity on March 17, 2025.
The redemption price is determined based on the simple average closing gold price from March 10-13, 2025, as published by the Indian Bullion and Jewellers Association.
SGB Maturity And Premature Redemption
Standard SGBs mature eight years from the issuance date, leading to the March 17, 2025, redemption date for the 2016-17 Series IV.
The SGB 2019-20 Series IV, issued at Rs 2,943 per gram on September 17, 2019, is now eligible for premature redemption, despite its eight-year maturity period.
Total Return Of SGB 2017-18 Series III Tranche
The total return on the Sovereign Gold Bond (SGB) issued at ₹2,943 per gram in 2019 and redeemable at ₹8,624 per gram in 2025 is:
Total Return = ((Finall al Value – Initial Value) / Initial Value) * 100
= ((8,624 – 2,943) / 2,943) * 100
= 193.1%
So, the total return over 5.5 years is approximately 193%.
Will SGB Returns be Taxed?
The interest on SGBs shall be taxable as per the provision of the Income Tax Act, 1961 (43 of 1961). The capital gains tax arising on redemption of SGB to an individual is exempted. The indexation benefits will be provided to long-term capital gains arising to any person on transfer of the SGB.
What Are Sovereign Gold Bonds?
Introduced In November 2015, sovereign gold bonds (SGBs) are government securities denominated in grams of gold. They substitute for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. The SGBs are issued by the RBI on behalf of the government.
The table below details the tranches eligible for premature redemption during the specified period:
| S No | Tranche | Issue Date | Date of premature redemption | Dates for submitting the request for premature redemption by the investors to the Receiving Offices/NSDL/CDSL/RBI Retail Direct | |
| From | To | ||||
| 1 | 2017-18 Series III | 16-Oct-17 | 16-Apr-25 | 17-Mar-25 | 7-Apr-25 |
| 2 | 2017-18 Series IV | 23-Oct-17 | 23-Apr-25 | 24-Mar-25 | 15-Apr-25 |
| 3 | 2017-18 Series V | 30-Oct-17 | 30-Apr-25 | 31-Mar-25 | 21-Apr-25 |
| 4 | 2017-18 Series VI | 6-Nov-17 | 6-May-25 | 5-Apr-25 | 28-Apr-25 |
| 5 | 2017-18 Series VII | 13-Nov-17 | 13-May-25 | 11-Apr-25 | 3-May-25 |
| 6 | 2017-18 Series VIII | 20-Nov-17 | 20-May-25 | 19-Apr-25 | 13-May-25 |
| 7 | 2017-18 Series IX | 27-Nov-17 | 27-May-25 | 25-Apr-25 | 17-May-25 |
| 8 | 2017-18 Series X | 4-Dec-17 | 4-Jun-25 | 5-May-25 | 26-May-25 |
| 9 | 2017-18 Series XI | 11-Dec-17 | 11-Jun-25 | 9-May-25 | 2-Jun-25 |
| 10 | 2017-18 Series XII | 18-Dec-17 | 18-Jun-25 | 19-May-25 | 9-Jun-25 |
| 11 | 2017-18 Series XIII | 26-Dec-17 | 26-Jun-25 | 27-May-25 | 16-Jun-25 |
| 12 | 2017-18 Series XIV | 1-Jan-18 | 1-Jul-25 | 31-May-25 | 21-Jun-25 |
| 13 | 2018-19 Series I | 4-May-18 | 3-May-25 | 3-Apr-25 | 23-Apr-25 |
| 14 | 2018-19 Series II | 23-Oct-18 | 23-Apr-25 | 24-Mar-25 | 15-Apr-25 |
| 15 | 2018-19 Series III | 13-Nov-18 | 13-May-25 | 11-Apr-25 | 3-May-25 |
| 16 | 2018-19 Series IV | 1-Jan-19 | 1-Jul-25 | 31-May-25 | 21-Jun-25 |
| 17 | 2018-19 Series V | 22-Jan-19 | 22-Jul-25 | 21-Jun-25 | 14-Jul-25 |
| 18 | 2018-19 Series VI | 12-Feb-19 | 12-Aug-25 | 11-Jul-25 | 2-Aug-25 |
| 19 | 2019-20 Series I | 11-Jun-19 | 11-Jun-25 | 9-May-25 | 2-Jun-25 |
| 20 | 2019-20 Series II | 16-Jul-19 | 16-Jul-25 | 16-Jun-25 | 7-Jul-25 |
| 21 | 2019-20 Series III | 14-Aug-19 | 14-Aug-25 | 15-Jul-25 | 4-Aug-25 |
| 22 | 2019-20 Series IV | 17-Sep-19 | 17-Sep-25 | 18-Aug-25 | 8-Sep-25 |
| 23 | 2019-20 Series V | 15-Oct-19 | 15-Apr-25 | 15-Mar-25 | 5-Apr-25 |
| 24 | 2019-20 Series VI | 30-Oct-19 | 30-Apr-25 | 31-Mar-25 | 21-Apr-25 |
| 25 | 2019-20 Series VII | 10-Dec-19 | 10-Jun-25 | 9-May-25 | 31-May-25 |
| 26 | 2019-20 Series VIII | 21-Jan-20 | 21-Jul-25 | 21-Jun-25 | 11-Jul-25 |
| 27 | 2019-20 Series IX | 11-Feb-20 | 11-Aug-25 | 11-Jul-25 | 1-Aug-25 |
| 28 | 2019-20 Series X | 11-Mar-20 | 11-Sep-25 | 12-Aug-25 | 1-Sep-25 |
| 29 | 2020-21 Series I | 28-Apr-20 | 28-Apr-25 | 29-Mar-25 | 19-Apr-25 |
| 30 | 2020-21, Series II | 19-May-20 | 19-May-25 | 19-Apr-25 | 9-May-25 |
| 31 | 2020-21, Series III | 16-Jun-20 | 16-Jun-25 | 17-May-25 | 6-Jun-25 |
| 32 | 2020-21, Series IV | 14-Jul-25 | 14-Jul-25 | 13-Jun-25 | 4-Jul-25 |
| 33 | 2020-21, Series V | 11-Aug-20 | 11-Aug-25 | 11-Jul-25 | 1-Aug-25 |
| 34 | 2020-21, Series VI | 8-Sep-20 | 8-Sep-25 | 8-Aug-25 | 29-Aug-25 |
