Sovereign Gold Bond (SGB)
Government bonds linked to the price of gold that also pay 2.5% interest a year.
Each bond is worth a gram of gold; it matures after 8 years at the gold price then, with early redemption from the fifth year. The interest is taxed at your slab rate.
The gain at maturity is tax-free for those who bought at issue and held to maturity; otherwise it's taxed like listed gold.
Sovereign Gold Bond Calculator
Interest, redemption value and tax on your Sovereign Gold Bonds, at maturity or on an early redemption date.
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Rules as of tax year 2026-27. Written by the Welthr team; last reviewed on . Not financial advice.