RBI announces premature redemption dates for Sovereign Gold Bonds (SGBs). Check details here

Sovereign Gold Bonds (SGBs) are issued for a tenure of eight years but one can redeem these gold bonds prematurely after five years. The premature redemption window opens every six months.

The Reserve Bank of India (RBI) issued a calendar detailing SGB tranches premature redemption during the period October 01, 2023, to March 31, 2024. 

However, it may be noted that the dates may undergo a change in case of unscheduled holiday/s. Investors are advised to take note of the period for submission of requests for redemption of SGB, in case they choose to redeem their holdings before maturity, the central bank said in the press release.

RBI Announces Dates for Premature Redemption of Sovereign Gold Bonds, Providing Flexibility to Investors

SGB premature redemption dates for October 2023 - March 2024 period

For SGB 2017-18 Series III which was issued on October 16, 2017, the dates for submitting the request for premature redemption by the investors will start from September 16, 2023, to October 6, 2023

For SGB 2017-18 Series IV which was issued on October 23, 2017, the dates for submitting the request for premature redemption by the investors will start from September 23, 2023, to October 13, 2023.

For SGB 2017-18 Series V which was issued on October 30, 2017, the dates for submitting the request for premature redemption by the investors will start from September 30, 2023, to October 20, 2023.
 

What are SGBs?

SGBs are the perfect alternative to investment in physical gold. With these bonds, you can enjoy capital appreciation and also earn interest every year. The minimum investment in the bond is one gram with a maximum limit of 4 kg for individuals each fiscal year. Eligible investors include individuals, HUFs, trusts, universities, and charitable institutions. 

Taxation of Sovereign Gold Bonds

Interest on Sovereign Gold Bonds is paid @ 2.50% on the issue price and is credited to your bank account on a half-yearly basis. “The interest received on Sovereign Gold Bonds is fully taxable. As far as profits made at the time of redemption of Sovereign Gold Bonds are concerned, the same is fully tax-free in your hands. This rule for profits made on redemption applies, whether at the end of the original tenure of 8 years or on early redemption which is allowed after 5 years,” said Mumbai-based tax and investment expert Balwant Jain.