SGB Scheme Calendar for premature redemption October 2022 - March 2023

The RBI issues the bonds on behalf of the Government of India which are sold through banks, Stock Holding Corporation of India Limited (SHCIL), designated post offices, and NSE and BSE. The scheme was launched in November 2015 with an objective to reduce the demand for physical gold and shift a part of the domestic savings  used for the purchase of the yellow metal into financial savings. The bonds are denominated in multiples of gram (s) of gold with a basic unit of 1 gram. The tenor of the bond is 8 years with an exit option after the 5th year to be exercised on the next interest payment dates. The minimum permissible investment is 1 gram of gold. The maximum limit of subscription is 4 kg for individuals and HUFs and 20 kg for trusts and similar entities per financial year. The know-your-customer norms are the same as that for the purchase of physical gold.

The details of tranches falling due for premature redemption during the period October 1, 2022 to March 31, 2023, along with the window available for submission of request for premature redemption by the investors however, be noted that the mentioned dates may undergo a change in case of unscheduled holiday/s. Investors are advised to take note of the period for submission of requests for redemption of SGB, in case they choose to redeem their holdings before maturity.

SGB Scheme Calendar for premature redemption October 2022 - March 2023

The interest earned from SGB will be taxable as income from other sources while TDS is not applicable on the bond. The rules on the taxation of capital gains on redemption of SGB are very clear that after the maturity of 8 years lock-in period the entire gains are exempted or tax free. However, if the SGB is redeemed after the lock-in period of 5 years and before the maturity period of 8 years, the gains accumulated on the redemption will be long term capital gains and it will be taxed at 20 per cent with indexation benefit If the indexation benefit is not opted then 10 per cent tax rate.


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