Sovereign Gold Bonds
Government-backed bonds denominated in grams of gold — a paper alternative to holding physical gold, issued by the RBI on behalf of the Government of India.
Sovereign Gold Bonds at a glance
Government-backed bonds denominated in grams of gold — a paper alternative to holding physical gold, issued by the RBI on behalf of the Government of India.
What to know before you start
Fixed interest, plus gold-linked value
SGBs carry a fixed annual interest rate (paid semi-annually), in addition to tracking the market price of gold.
No storage or making-charge concerns
Held in demat or certificate form — no locker, no purity concerns, no making charges as with jewellery.
8-year tenor, with exit windows
SGBs carry an 8-year tenor with early redemption permitted from the 5th year onward, on specified dates.
Capital gains treatment
Capital gains on redemption at maturity are exempt for individuals; taxation differs if sold earlier in the secondary market — we can walk through the current rules.
Common questions
The issue price is based on the average closing price of gold of 999 purity for the last three business days before the subscription period, as published by RBI.
Yes — through early redemption from year 5 onward on RBI-specified dates, or by selling on the stock exchange if listed, subject to market liquidity.
Yes, the semi-annual interest is taxable as 'income from other sources' at your applicable slab rate.
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