Sovereign Gold Bond – Return Calculation 2023| Dates | FAQs

Sovereign Gold Bond Calculator

Sovereign Gold Bond Calculator


The Sovereign Gold Bond plan is an investment in gold that is issued by the Reserve Bank of India(RBI) on behalf of the Government of India(GOI).
This plan aims to reduce the demand for physical gold, thereby keeping a tab on imports of gold in India and utilizing resources effectively.
It offers the same benefits as physical gold. The value of SGB increases with the market rate of gold.
The minimum permissible amount allowed for investment in bonds is 1 gram of gold. The maximum limit of the subscription is 4KG for individuals/HUFs and 20KG for trusts and similar entities per fiscal year, which is notified by the RBI from time to time. In the condition of joint holding, the investment limit of 4KG is applied to the first applicant only.
Now let’s discuss Sovereign Gold Bond Calculator.

Also Read Sovereign Gold Bond : Best Returns on Gold Investment

Important Points of Sovereign Gold Bond Calculator

  • SGB comes with a tenor of 8 years and one can exit at the end of 5 years onwards and can be exercised on the payment dates.
  • The current interest rate is 2.50% annually. They are paid twice a financial year on the nominal value.
  • GOI, in consultation with the RBI, has decided to offer a discount of Rs 50 per gram on the nominal value of the SGB.
  • Interest on the SGB will be taxable as per the provisions of the Income-tax Act, 1961.
  • The capital gains tax arising on redemption of bonds to an individual has been exempted.
  • The indexation benefits will be provided to long terms capital gains (LTCG) arising to any person on transfer of bond.
  • Tax Deducted at Source(TDS) is not applicable to the bond. However, it is the responsibility of the bond subscriber to comply with the tax laws.

SGB Price History

Tranche Subscription PeriodPrice offered
2022-23 Series IJune 20-24, 2022Rs 5,041 per gram
2022-23 Series IIAugust 22-26, 2022Rs 5,091 per gram
2022-23 Series IIIDecember 19-27, 2022Rs 5,409 per gram
2022-23 Series IVMarch 6-10 2023Rs 5,611 per gram
2023-24 Series 1June 19-23, 2023Rs 5,926 per gram

Also Read Sovereign Gold Bond SBI | How to Buy SGB Online?

Return Calculation


Here I’m sharing an illustration of SGB return in case you have invested in the year 2015 so how your money would have grown in the past 5 years & if you redeem at the current rate what will be ROI you may expect? As per the gold trend, the ROI one can easily fetch by having invested in gold is 8% on average.

Having considered the actual gold rate over a span of 5 years let’s see how my money has grown if I have invested in 100 units of SGB in the year 2015 when the gold rate for 1gm was Rs.2634 and I remained invested up to lock-in period of 5 years & now on the current date I wish to redeem my SGB so how will returns look like:

Issue Price/gmNo. of UnitsInvestment ValueFixed ROI

YearALTP on the end of 1st half-year1st Half Year InterestALTP on the end of 2nd half-year2nd Half Year InterestAnnual Return

After 5 Years you apply for redemption & the last traded price is 5050/gm

Redemption Value505000
Total Semi-Annual Return40785
Returned Value545785
Value Earned282385
Annual ROI21%

These returns are the basis of the gold trend over 5 years as gold has been very bullish during pandemics due to low market sentiment otherwise considering the trend for 10 years this return would have averaged out around 18 looking at the gold trend:

Also Read Sovereign Gold Bond Tax-Exemption with Example – STCG | LTCG | TDS

Gold Rate of India

Date24K-Price/10 gramDifference
Jan 28, 2021₹49900₹9200
Jan. 28, 2020₹40,700₹13196
Jan. 28, 2018₹27,504₹1050
Jan. 28, 2017₹26,454₹2192
Jan. 28, 2016₹24,262₹-832
Jan. 28, 2015₹25,094₹-106
Jan. 28, 2014₹25,200₹-3268
Jan. 28, 2013₹28,468₹744
Jan. 28, 2012₹27,724₹8137
Jan. 28, 2011₹19,587₹3578
Source – cleartax

Also Read Gold investment comparison : with all form | Returns comparison 2022

Sovereign Gold Bond 2023 Dates

TrancheDate of SubscriptionDate of IssuanceIssue price
2023-24 Series IJune 19 – June 23, 2023June 27, 2023Rs 5,926 per gram
2023-24 Series IISeptember 11-September 15, 2023September 20, 2023Rs 5,923 per gram

Also Read How to Buy & Sell Sovereign Gold Bond in Zerodha? Gold Bond Taxation | Gold ETF vs Gold Bond

Sovereign Gold Bond Calculator FAQs

At what price the Sovereign Gold Bonds are sold?

The price of the SGBs shall be fixed in INR(Indian Rupees) on the basis of a simple average of the closing price of gold of 999 purity published by the Price of the SGBs shall be fixed at INR (Indian Rupees) on the basis of simple average of the closing price of gold of 999 purity published by the India Bullion
& JAL (Jewelers Association Limited) for the last 3 working days of the week preceding the subscription period.
The issue price of the SGBs will be Rs 50/gram less than the nominal value to those investors applying online.

Can I get the SGBs in Demat form?

The SGBs can be held in the Demat account. For this, the applicant has to mention the details of DP-ID and DP Client ID in the application form.

What is the interest and how will the interest be paid?

The interest and price will be notified by the Reserve Bank of India at the time of issuance. Interest will be credited semiannually to the registered bank account of the investor and the last interest will be payable on maturity along with the principal amount.

Is TDS applicable to the SGB?

TDS is not applicable to the SGB. Although, it is the responsibility of the subscriber to comply with the tax laws.

What will I get on redemption of SGBs?

On maturity, the redemption proceeds will be equivalent to the prevailing market value of grams of gold originally invested in INR.
The redemption price shall be based on simple averages of the closing price of gold of 999 purity of the previous three working days from the date of repayment,
published by the Indian Bullion and JAL.

Additional FAQs


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Additional Frequently Asked Questions

  1. When will the investors be issued Holding Certificate?

    The investors will be issued a Certificate of Holding on the date of issuance of these bonds.
    Certificate of Holding can be collected from the Bank’s branches or sent directly to the registered e-mail ID from RBI (Reserve Bank of India).

  2. What are the limitations of applying to SGBs online through Internet Banking?

    Only a single holding mode is allowed and in the case of an application through a Joint account, the SGB is issued in the name of the Primary Account holder.

  3. Can I purchase 4Kg in the name of each of my family members?

    Yes, each family member can hold the SGB if they satisfy the eligibility criteria for investing in Bonds.

  4. Are there any risks in investing in these bonds?

    There may be a risk of capital loss if the market price of gold declines. Although, the subscriber does not lose in terms of the gold units which he has paid for.

  5. How will I get the redemption money?

    Both interest and redemption proceeds will be credited to the registered account number furnished in the application form.

  6. Can I buy 4Kg worth of bonds every financial year?

    Yes. A subscriber can buy 4Kg worth of gold every fiscal year (April-March) basis.

  7. Why should I buy bonds rather than physical gold?

    Sovereign Gold Bond : Best Returns on Gold Investment

Also Read How to Buy Sovereign gold Bond from ICICI Bank or ICICI Direct?