The Government of India, in consultation with the Reserve Bank of India, has decided to issue new Sovereign Gold Bonds (SGBs) in tranches
The SGB Series 2023-24 Series III subscription period is scheduled from December 18 – December 22, 2023. Therefore, the date of issuance in SGB Series III is December 28, 2023.
The SGB Series 2023-24 Series IV subscription period is scheduled from February 12 – February 16, 2024, 2024. Therefore, the date of issuance in SGB Series III is February 21, 2024.
| S. No. | Tranche | Date of Subscription | Date of Issuance |
| 1 | 2023-24 Series III | December 18 – December 22, 2023 | 28-Dec-23 |
| 2 | 2023-24 Series IV | February 12 – February 16, 2024 | 21-Feb-24 |
Source: RBI
How to buy Sovereign Gold Bonds (SGB) online through SBI, HDFC Bank, PNB, Canara Bank, ICICI Bank
Where can customers buy
The SGBs will be sold through Scheduled Commercial banks (except Small Finance Banks, Payment Banks and Regional Rural Banks), Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), designated post offices, and recognised stock exchanges, viz., National Stock Exchange of India Limited and Bombay Stock Exchange Limited.
SGB details
The SGBs will be denominated in gram(s) of gold multiples, with a fundamental unit of one gram. The tenor of the SGB will be eight years, with an option for premature redemption after the fifth year to be exercised on the date interest is payable. The minimum allowable investment will be one gramme of gold. The SGBs will be paid for in cash (up to a maximum of 20,000), demand draft, check, or electronic banking.
How will issue price be calculated
According to RBI press release, “Price of SGB will be fixed in Indian Rupees on the basis of simple average of closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Limited (IBJA) for the last three working days of the week preceding the subscription period. The issue price of the SGBs will be less by ?50 per gram for the investors who subscribe online and pay through digital mode.”
Interest rate
The investors will be paid at a fixed rate of 2.50 percent per annum payable semi-annually on the nominal value.
SGB Tax treatment
The interest on SGBs is taxable under the provisions of the Income Tax Act of 1961 (43 of 1961). The capital gains tax on SGB redemption to a person is excluded. Long-term capital gains deriving from the transfer of the SGB will be eligible for indexation advantages.
Sovereign Gold Bonds: What are the tax implications?
Maximum limit
The maximum subscription limit each fiscal year (April-March) must be 4 kg for individuals, 4 kg for HUF, and 20 kg for trusts and similar companies, as specified by the Government from time to time. When making a subscription application, investors will be asked to sign a self-declaration to that effect. During the fiscal year, the annual ceiling will comprise SGBs subscribed under multiple tranches as well as those acquired on the secondary market.
