Last day to invest in Sovereign Gold Bonds Scheme 2023-24 Series II: Check SGB price, interest rate, where and how to buy, taxation

The Reserve Bank of India (RBI) had announced the issuance of a new tranche of Sovereign Gold Bonds (SGB). The SGB Series II subscription period is scheduled from September 11–September 15, 2023. Therefore, the final day to invest in SGB Series II is September 15, 2023.

The pricing of the SGB Series II has been set by the government at Rs 5,923. Applying online and paying for the application in digital manner can get you a discount of up to Rs 50.

Also read: Latest Sovereign Gold Bond tranche open for subscription; Where to buy these bonds, how to invest in SGB online

How is price on SGB calculated

The nominal value of the bond is Rs 5,923 based on the simple average of closing prices for gold with a purity of 999 published by the India Bullion and Jewellers Association Ltd (IBJA) for the last three working days of the week prior to the subscription period, i.e. September 6, 7, and 8, 2023.

Also read: How to buy Sovereign Gold Bonds (SGB) online through SBI, HDFC Bank, PNB, Canara Bank, ICICI Bank

Read more at:

Redemption on maturity
The SGB will be redeemed in Indian Rupees once they reach maturity. The simple average of the 999-purity gold closing price over the previous three business days as reported by the India Bullion and Jewellers Association Limited serves as the redemption price.

Both the interest and the proceeds from the redemption of the SGB will be credited to the bank account the customer mentioned at the time of purchase.

SGB details

Sovereign Gold Bonds are government securities denominated in grams of gold. They are alternatives for physical gold. Investors must pay the issue price, and the bonds will be redeemed at maturity. The bond is issued by the Reserve Bank of India on behalf of the Government of India. The Bonds bear interest at the rate of 2.50 per cent per annum on the amount of initial investment. As per RBI instructions “Every application must be accompanied by the ‘PAN Number’ issued by the Income Tax Department to the investor(s)’’ as the PAN number of the first applicant is mandatory.

SGB tax benefits

SGBs are a tax-efficient investment since they provide investors with tax advantages. If the investment is kept to maturity, capital gains on the redemption of SGBs are exempt from capital gains tax. Capital gains tax is applicable if SGBs are sold before maturity.

Note that SGB interest income is subject to taxation under the Income Tax Act, it is also eligible for indexation advantages. No tax benefits are available for the deposit of Sovereign Gold Bonds (SGBs) under Section 80C of the Income Tax Act. SGBs also benefit from indexation. The benefit of indexation on capital gains is available to investors who hold SGBs for longer than three years.


Minimum size
Minimum permissible investment will be One gram of gold.

Maximum limit
Individuals may subscribe up to 4 kg, HUFs up to 4 kg, and trusts and similar entities up to 20 kg per fiscal year (April-March), as determined by the government on a case-by-case basis. A self-declaration to that effect will be received. During the fiscal year, SGBs subscribed under various tranches and purchased on the Secondary Market will be included in the annual ceiling.

Where to buy SGBs

The SGBs will be sold through Commercial banks, Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), designated post offices (as may be notified) and recognised stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange Limited, either directly or through agents.