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Sovereign Gold Bond Calculator

Interest, redemption value and tax on your Sovereign Gold Bonds, at maturity or on an early redemption date.

₹

On your bond's certificate or in your demat statement.

₹

RBI's price for that date, or your estimate of the gold price then.

Redemption value
₹1,20,000

On 15 Oct 2026

Interest (2.5% a year)
₹6,292

16 payments of ₹393

Profit after tax
₹92,869

On ₹31,460 invested

Tax
AmountTax
Interest, at your slab rate₹6,292₹1,963
Gain on redemption (tax-free: bought at issue, held to maturity)₹88,540Exempt

Interest received so far: ₹6,292. RBI redeems early only on interest dates from the fifth year; apply through your bank, post office or broker before the date.

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How Sovereign Gold Bonds pay

  • Interest: 2.5% a year on the issue price, paid every six months, taxed at your slab rate.
  • Redemption: after 8 years, at the gold price then, in rupees; early from the fifth year on interest dates.
  • Tax on the gain: nil for original subscribers at maturity; otherwise as listed gold.

Enter your bond's issue price and date (on the certificate or demat statement). For the redemption price, use RBI's announced price or your estimate of the gold price. For other gold sales, use the capital gains calculator.

Results are estimates for illustration only, not financial advice. Banks and schemes may round, apply TDS or use slightly different day counts — confirm figures with your bank or employer. Written by the Welthr team; last reviewed on .

Frequently asked questions

Is the gain on Sovereign Gold Bonds tax-free?

Only if you bought the bond from RBI when it was issued and hold it until it matures after 8 years (the rule from 1 April 2026). Bonds bought on the stock exchange, or redeemed early, are taxed like listed gold: 12.5% on long-term gains (held over 12 months), slab rate otherwise.

Can I redeem a Sovereign Gold Bond early?

Yes, with RBI from the fifth year, on any interest payment date. Apply through your bank, post office or broker before the date. You can also sell on the stock exchange at any time.

How is the SGB redemption price set?

It's the average closing price of 999 purity gold, published by the India Bullion and Jewellers Association, for the three business days before the redemption date. RBI announces it before each date.

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