[PDF] FAQ - SGBS Online

Are SGBS tax deductible?

There is no applicable tax deducted at source on SGBs. The SGBs price is linked to the gold price of 999 purity. The bonds can be used as collateral for applying for a loan. The bond’s tenure is for eight years but has the flexibility of redemption after five years with a sovereign guarantee on the redeemed amount and interest.

What happens if you invest in SGB?

Your investment in SGB can result in a capital loss as the bond value is linked to the current price of gold. If the price at which you buy the bond is higher than the price at which you redeem it at maturity, you might end up in a loss.

How easy is it to buy a SGB?

SGBs are easy to buy and handle with a term of eight years and an interest rate of 2.50% per annum paid on a half-yearly basis. Every individual purchase is restricted to a maximum of 4 kgs per financial year and in case of a trust, it is restricted to 20 kgs.

When will SGB Tranche 2 be open for subscription?

The issue date of the next SGB series, tranche 2, is scheduled to be open for subscription from September 11 to September 15, 2023. The issue price will be determined by calculating the simple average closing price of the last 3 working days of 999-purity gold as published by the Indian Bullion and Jewellers Association.