RBI Sovereign Gold Bond (SGB) 2.5% + 100% Tax-Free Maturity Calculator

Calculate returns on RBI Sovereign Gold Bonds (SGB) including 2.5% annual simple interest paid directly to your bank and 100% tax-free capital gains under Section 47(viic).

Interactive RBI Sovereign Gold Bond (SGB) 2.5% + 100% Tax-Free Maturity Calculator
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Formula & Calculation Methodology

SGB Return = (Gold Quantity * Maturity Price) + (8 Years * 2.5% Annual Interest).

Step-by-Step Worked Example

50 Grams SGB @ Issue Price ₹6,500/g, Expected 8-Yr Gold Rate ₹12,000/g

  1. Invested: ₹3,25,000
  2. Total 2.5% Interest (8 Yrs): ₹65,000 (₹8,125/year direct to bank)
  3. Maturity Gold Value: ₹6,00,000
  4. Capital Gains: ₹2,75,000 (100% Tax-Free)
Result: Total 8-Year Payout: ₹6,65,000 (104.6% Total Profit, Zero Tax)

Frequently Asked Questions

Is premature exit allowed in SGB before 8 years?

Yes, RBI allows premature encashment after the 5th year on interest payment dates.

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