Every financial year, the Reserve Bank of India (RBI) announces the issuance of Sovereign Gold Bond (SGB) tranches for that particular year with issue dates and redemption dates. The tenor of an SGB is eight years. Though the tenor is eight years for SGBs, premature redemption of the gold bonds is permitted after five years from the date of issue of such bonds
Also read: SGB premature redemption dates for April 2024 – September 2024 announced, check details
This year, already two Sovereign Gold Bond (SGB) Scheme launched in 2016 have come up for final redemption. Let us see the tentative dates of SGB up for financial redemption in 2024.
Sovereign Gold Bonds 2016-I
Sovereign Gold Bonds 2016-I is a 8 year bond which matured in February 8 2024. The issue price of SGB 2016-I, when launched was Rs 2600 per gram. The final redemption amount is Rs 6,271 for each SGB unit.
Sovereign Gold Bonds: These SGB investors will earn 141% on maturity this month
SGB 2016 Series II
According to the RBI notification issued on March 22, 2024, the date has been set as March 28, 2024 (March 29, 2024 being a holiday). The final redemption amount, which is due on March 28, 2024, is Rs 6601 for each SGB unit.
Also read: Final redemption price of SGB 2016 Series II announced; investors to earn 10.7%
Sovereign Gold Bond 2016-17 – Series I
Sovereign Gold Bond 2016-17 – Series issue price was Rs 3,119, and the bonds were issued on August 5, 2016, therefore the tentative final redemption date is in the first week of August 2024. The Bonds will carry an annual interest rate of 2.75 percent (fixed rate) on the initial investment. are paid in semi-annual installments, with the last installment due along with the principal at maturity.
Sovereign Gold Bonds 2016-17 Series-II
The tranche was offered for subscriptions from September 1 to September 9, 2016. The bonds were scheduled to be released on September 23, 2016 but were rescheduled to be released on September 30, 2016. The issue price was Rs 3,150. The tentative redemption date is in the last week of September 2024. The Bonds carries an annual interest rate of 2.75 percent (fixed rate) on the initial investment. Interest are semi-annual installments, with the last installment due along with the principal at maturity.
The redemption for this tranche should happen in the month of September 2024.
Sovereign Gold Bonds 2016-17 – Series III
Applications for the bond were accepted between October 24, 2016 and November 2, 2016. The bonds were issued on November 17, 2016. The issuance price was Rs 3007 per gram. The last redemption date should be around November 17, 2024. The investors will be compensated at a fixed rate of 2.50 per cent per annum payable semi-annually on the nominal value.
Point to note
Note that the date of the final redemption will change depending on bank working days and other factors. RBI will send notifications via email and SMS to SGB investors one month before the redemption date.
How SGB final redemption price is calculated
The redemption price will be in Indian Rupees based on previous week’s (Monday-Friday) simple average of closing price of gold of 999 purity published by IBJA.
How Sovereign Gold Bond issue price will be decided
Price of Bond 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 for the week (Monday to Friday) preceding the subscription period. The issue price of the Gold bonds will be Rs 50 per gram less than the nominal value.
SGB tax treatment
The interest on Gold Bonds shall be taxable as per the provision of Income Tax Act, 1961 (43 of 1961). The capital gains tax arising on redemption of SGB to an individual has been exempted. The indexation benefits will be provided to long term capital gains arising to any person on transfer of bond.
