The Reserve Bank of India (RBI) has announced the redemption price for the final redemption of SGB 2018-19 Series-I, which were due on May 04, 2026. For investors of SGB 2018-19 Series-I, it is a staggering 376% return over 8 years, translating to a compound annual growth rate (CAGR) of 22%, excluding the additional 2.5% half-yearly interest payments received during this period.
Issue and Redemption Price
The subscription dates for this series of Sovereign Gold Bond (SGB) were April 16-20, 2018, and the Certificate of Bond was issued on May 04, 2018. At that time, the price of these bonds was fixed at Rs. 3,114 and Rs 3,064 per gram for online bids.
Accordingly, the redemption price for final redemption due on May 04, 2026, is fixed at Rs 14,901 per unit of SGB based on the simple average of the closing price of gold for the three business days i.e., April 28, April 29, and April 30, 2026.
The redemption price is calculated under RBI rules. For this, the average price of 999 purity gold of the last three business days published by the India Bullion and Jewelers Association (IBJA) is taken.
SGBs have an eight-year duration, but investors may redeem them before the fifth year. Sovereign Gold Bond Scheme, premature redemption of Gold Bond is permitted after the fifth year from the date of issue of such Gold Bond, on the date on which interest is payable.
SGB New Tax Rules on Gains
The capital gains tax arising on redemption of these bonds to an individual is exempted. But, watchout the new tax rules on gains, if you are buying from the secondary market. A big change has been introduced in the taxation of SGBs in Budget 2026. The capital gains from gold bonds will be exempt from tax if the bond was purchased during primary issuance and held for a full 8 years until maturity. Premature withdrawal through the RBI does not qualify for this exemption.
Capital gains from SGBs will be taxable if they are bought in the secondary market, sold in the secondary market, or redeemed during a premature withdrawal window, regardless of the original purchase method.
Disclaimer: This article is intended for general awareness only and should not be construed as investment, financial, or tax advice. The redemption price and return figures cited are based on RBI’s official announcement and are specific to SGB 2018-19 Series I. Tax exemption on SGB gains is subject to conditions laid down under Budget 2026 and may vary based on individual purchase method and holding period. Past returns on Sovereign Gold Bonds are not indicative of future performance. Investors are strongly advised to consult a SEBI-registered investment advisor or certified tax professional before making any redemption or reinvestment decisions.