SGBs redemption 2024: The Reserve Bank of India (RBI) annually issues Sovereign Gold Bond (SGB) tranches, outlining their issuance and redemption dates. These bonds have an eight-year tenor but allow premature redemption after five years from the date of issue. According to ET, several SGBs from the 2016 series are up for final redemption in 2024. Here are the tentative dates and details:
Sovereign Gold Bonds 2016-I
It is an 8-year bond that matured on February 8, 2024.Initially priced at Rs 2600 per gram, the final redemption amount is Rs 6,271 for each SGB unit.
Sovereign Gold Bonds 2016-II
As per the RBI notification dated March 22, 2024, the final redemption date for Sovereign Gold Bonds 2016-II is set for March 28, 2024 (March 29 being a holiday). The redemption amount due on March 28, 2024, is Rs 6601 for each SGB unit.
Sovereign Gold Bond 2016-17 – Series I
The Sovereign Gold Bond 2016-17 – Series was issued at Rs 3,119 on August 5, 2016. Hence, the tentative final redemption date falls in the first week of August 2024. These bonds carry an annual interest rate of 2.75 percent, paid semi-annually, with the last installment due along with the principal at maturity.
Sovereign Gold Bonds 2016-17 Series-II
The Sovereign Gold Bonds 2016-17 – Series II were open for subscription from September 1 to September 9, 2016. Initially scheduled for release on September 23, 2016, they were later rescheduled to September 30, 2016, with an issue price of Rs 3,150. The tentative redemption date is set for the last week of September 2024. These bonds carry an annual interest rate of 2.75 percent, paid semi-annually, with the final installment due along with the principal at maturity. Redemption for this tranche is expected to occur in September 2024.
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Sovereign Gold Bonds 2016-17 – Series III
Applications for the bond were accepted from October 24 to November 2, 2016, and the bonds were issued on November 17, 2016, at an issuance price of Rs 3007 per gram. The final redemption date is expected to be around November 17, 2024. Investors will receive compensation at a fixed rate of 2.50 percent per annum, paid semi-annually on the nominal value.
Important note
It is important to note that the final redemption date may vary depending on bank working days and other factors. The RBI will send notifications via email and SMS to SGB investors one month before the redemption date.
Calculation of redemption price
The redemption price will be in Indian Rupees, determined by the previous week’s (Monday-Friday) simple average of the closing price of gold of 999 purity published by IBJA.
Determination of issue price
The price of the bond will be set in Indian Rupees based on the simple average of the 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.
Tax treatment
The interest earned on Gold Bonds is subject to taxation under the provisions of the Income Tax Act, 1961 (43 of 1961). However, the capital gains tax arising from the redemption of SGB by individuals has been exempted. Indexation benefits will be provided for long-term capital gains arising from the transfer of bonds to any person.
Sovereign Gold Bonds 2016-I
It is an 8-year bond that matured on February 8, 2024.Initially priced at Rs 2600 per gram, the final redemption amount is Rs 6,271 for each SGB unit.
Sovereign Gold Bonds 2016-II
As per the RBI notification dated March 22, 2024, the final redemption date for Sovereign Gold Bonds 2016-II is set for March 28, 2024 (March 29 being a holiday). The redemption amount due on March 28, 2024, is Rs 6601 for each SGB unit.
Sovereign Gold Bond 2016-17 – Series I
The Sovereign Gold Bond 2016-17 – Series was issued at Rs 3,119 on August 5, 2016. Hence, the tentative final redemption date falls in the first week of August 2024. These bonds carry an annual interest rate of 2.75 percent, paid semi-annually, with the last installment due along with the principal at maturity.
Sovereign Gold Bonds 2016-17 Series-II
The Sovereign Gold Bonds 2016-17 – Series II were open for subscription from September 1 to September 9, 2016. Initially scheduled for release on September 23, 2016, they were later rescheduled to September 30, 2016, with an issue price of Rs 3,150. The tentative redemption date is set for the last week of September 2024. These bonds carry an annual interest rate of 2.75 percent, paid semi-annually, with the final installment due along with the principal at maturity. Redemption for this tranche is expected to occur in September 2024.
ALSO READ | Sovereign Gold Bonds Scheme 2023-24 Series IV subscription: Applied online or offline? Here’s how to check allotment details
Sovereign Gold Bonds 2016-17 – Series III
Applications for the bond were accepted from October 24 to November 2, 2016, and the bonds were issued on November 17, 2016, at an issuance price of Rs 3007 per gram. The final redemption date is expected to be around November 17, 2024. Investors will receive compensation at a fixed rate of 2.50 percent per annum, paid semi-annually on the nominal value.
Important note
It is important to note that the final redemption date may vary depending on bank working days and other factors. The RBI will send notifications via email and SMS to SGB investors one month before the redemption date.
Calculation of redemption price
The redemption price will be in Indian Rupees, determined by the previous week’s (Monday-Friday) simple average of the closing price of gold of 999 purity published by IBJA.
Determination of issue price
The price of the bond will be set in Indian Rupees based on the simple average of the 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.
Tax treatment
The interest earned on Gold Bonds is subject to taxation under the provisions of the Income Tax Act, 1961 (43 of 1961). However, the capital gains tax arising from the redemption of SGB by individuals has been exempted. Indexation benefits will be provided for long-term capital gains arising from the transfer of bonds to any person.
