There is great news for investors investing in gold. The Reserve Bank of India (RBI) has fixed the premature redemption price for Sovereign Gold Bond (SGB) 2021-22 Series-I at Rs 15,840 per unit. At this price, investors are getting an excellent return of about 235 percent. The special thing is that this benefit has been received only due to increase in the price of gold, it does not include 2.5 percent interest annually. In such a situation, SGB has once again emerged as a strong investment option for long term investors.
The Reserve Bank of India (RBI) has announced the premature redemption price for investors of Sovereign Gold Bond (SGB) 2021-22 Series-I. According to RBI, from May 25, 2026, investors will be able to redeem their bonds at Rs 15,840 per unit.
RBI said that this redemption price will be based on the average of the last three trading days of gold of 999 purity. Investors can prematurely redeem the bonds after five years from the date of issue. However, this facility is available only on the fixed dates of interest payment. Investors who bought SGB 2021-22 Series-I online had invested at the price of Rs 4,727 per gram. Whereas for offline investors the price was Rs 4,777 per gram. Now with the redemption price reaching Rs 15,840, online investors have got a direct profit of Rs 11,113 per gram.
Strong return of 235 percent
If we look at it in percentage terms, investors have got a strong return of about 235.1 percent. This does not include the 2.5 percent annual interest received on bonds. That means the total return is even more than this. For example, if an investor had invested Rs 1 lakh in SGB at that time, his investment amount has now increased to approximately Rs 3.35 lakh. It is clear from this that in the long term, gold bonds have given great earnings to the investors.
However, now the tax rules related to SGB have changed. Under the new rules applicable from April 1, 2026, capital gains tax will have to be paid on premature redemption. This rule will also be applicable to those investors who had purchased bonds directly issued by the government. At the same time, the benefit of tax exemption will be available only to those original investors who will hold the SGB till the full maturity of 8 years. On the other hand, investors buying bonds from the secondary market will not get tax exemption even if they hold them till maturity.
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