SGB 2015 Series I: India’s First Sovereign Gold Bond Big Annual … – Outlook India

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The Reserve Bank of India (RBI) has announced that the first Sovereign Gold Bonds (SGBs) issued in India SGB 2015 Series I can be redeemed at Rs 6,132 per unit from November 30, 2023, with annual returns up to 12.9 per cent returns.

Initially priced at Rs 2,684 per gram, these bonds now yield 128.5 per cent on absolute basis when redeemed at Rs 6,132 per gram, and 152 per cent gross return when added with interest. Simply, a gram of SGB 2015 Series I bought in 2015 now appreciated by Rs 3,448, in addition to interest payment of Rs 627.

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At 2.75 per cent interest, Rs 2,684 in SGBs yielded Rs 37 every 6 months and Rs 627 in total interest over 8 years, totalling to Rs 6,759 when it reached final redemption.

According to the tax provisions, if the sovereign gold bonds are held till maturity, there will be no tax on the capital gains. This is its advantage over other investment options. But the interest will be taxed at slab rates. If taxed at 10 per cent, every six months you will receive Rs 33 which totals to around Rs 6,696, including gold value. According to RBI, the average annual return comes to 12.9 per cent.

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