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The Reserve Bank of India launched a gold scheme in August 2016 at a price of Rs 3,119 per gram, which gave good returns to investors investing under SGB. Gold prices have fallen significantly after the import duty was cut in Budget 2024. But after that, now gold has again reached close to 70 thousand.
The SGB scheme was launched in August 2016
Meanwhile, the government has announced the final redemption price of Sovereign Gold Bond. Its price is Rs 6,938 per gram. The government has fixed the government redemption price from July 29 to August 2. This scheme of Sovereign Gold Bond has been launched on August 5, 2016.
Investors get good returns under SGB
Investors investing under SGB have received good returns since the Reserve Bank of India announced gold prices at Rs 3,119 per gram in August 2016. It has given more than double the return on gold to investors who invested till maturity. According to calculations, this scheme has given a return of 122 percent in 8 years.
Investors can sell their gold quickly and earn profits in SGB
According to RBI rules, any Sovereign Gold Bond investor can earn profit by selling gold early. In such a situation, after the announcement of the redemption price of Gold Bond by RBI, now if someone wants to sell gold under SGB, then he will get 2.2 times the money. Because of this, if someone had invested Rs 1 lakh in Sovereign Gold Bond 2016 during this time, then he would have got Rs 2.22 lakh today.
How much is the fixed interest?
Under this scheme, investors are given a fixed return of 2.72 percent. Thus, the total return to the investor during 8 years has been 144 percent. This is a CAGR of 12 percent.
How to do SGB premature redemption?
For SGB premature redemption, investors can contact the bank/Stock Holding Corporation of India Limited (SHCIL) office/post office/agent 30 days before the coupon payment date. After accepting the request, the money will be sent to the given bank account. Premature redemption and interest is paid within 10 days.
Tax on premature withdrawal
Sovereign gold bond returns are divided into two types. The amount of capital gains received on bond maturity and 6 months' interest. RBI says that interest on the bond will be taxable as per the provisions of the Income Tax Act, 1961 (43 of 1961). Any person is exempted from capital gains tax arising on redemption of SGB. Indexation benefit will be given on long-term capital gains arising to any person on transfer of the bond. TDS is not applicable on this bond.
