The Reserve Financial institution of India (RBI) has introduced value for last redemption of its Sovereign Gold Bond (SGB) 2018-19 Sequence-I for buyers due on Monday, 4 Might, in response to a launch from the central financial institution.
That is for the SGB 2018 19 Sequence-I-Problem dated 13 April 2018, repayable on the expiration of eight years from the date of subject and with last redemption date of Might 04, 2026, the discharge added.
What’s the value for this SGB redemption?
In response to the discharge, the redemption value of the SGB shall be based mostly on easy common of closing value of gold of 999 purity of earlier three enterprise days from the date of redemption (28, 29 and 30 April 2026).
Accordingly, value for last redemption due on 4 Might shall be ₹14,901 per unit of SGB ( ₹Fourteen Thousand 9 Hundred and One per unit of SGB), as printed by the India Bullion and Jeweller’s Affiliation Ltd (IBJA), it added.
How a lot will buyers achieve?
Traders who opted for the gold bond stand to realize practically 386% enhance at ₹14,901/unit, towards the problem buy value of ₹3,114/unit.
For buyers who bought the SGBs on-line, there was a ₹50 low cost at time of issuance, pricing it at ₹3,064, when that is factored into the equation. An funding of ₹1 lakh at time of subject will develop to round ₹4.8 lakh on redemption.
Additional, the SGB additionally earned buyers 2.5% annual curiosity for the holding interval. This quantity has been credited on to investor accounts. The ultimate curiosity and principal quantity shall be made at maturity.
What’s the tenure of SGBs?
Sovereign Gold Bonds issued by the banking regulator are normally payable at their date of expiration, which is eight years from subject date.
Nonetheless, as per authorities guidelines on the SGB scheme, “untimely redemption of gold bonds could also be permitted after the fifth yr from the date of subject, on the date on which curiosity is payable”.
Do you need to pay taxes for earnings from SGBs?
SGB taxation after 1st April 2026 (Finances 2026): Capital positive factors on redemption are exempt just for unique subscribers who maintain SGB until maturity.
LTCG on SGB: Positive aspects from SGBs held for greater than 12 months are taxed at 12.5%.
STCG on SGB: Positive aspects from SGBs held as much as 12 months are taxed on the relevant earnings tax slab charge.
Secondary market SGB taxation: SGBs purchased from the secondary market will not be eligible for capital positive factors exemption on redemption.
Curiosity earnings: Curiosity earned on the SGBs can be taxable as per slab charge.
What was the SGB scheme? What’s its standing in 2026?
Sovereign Gold Bonds (SGBs) are authorities securities denominated in grams of gold, issued by the RBI on behalf of the Authorities of India. An alternative choice to bodily gold, they provide buyers the good thing about capital appreciation backed by authorities safety and with out additional fees connected to conventional gold holdings.
- No new Sovereign Gold Bond tranches have been introduced for FY 2026–27 and there’s no calendar issued as of April 2026.
- The scheme has been paused in impact amid issues over excessive borrowing, as per a Clear Tax report.
- These with present SGB holdings will proceed until maturity at 2.5% annual curiosity or early exit throughout untimely redemption.
- These with present holdings also can commerce SGBs on inventory exchanges, it added.
Disclaimer: This story is for academic functions solely. The views and suggestions made above are these of particular person analysts or broking firms, and never of Mint. We advise buyers to test with licensed specialists earlier than making any funding choices.
