You cannot buy a new Sovereign Gold Bond from the RBI today. The last tranche was 2023-24 Series IV, issued in February 2024, and RBI’s own bond page lists nothing after it. The only way in now is the secondary market on the stock exchanges.
That changes the whole proposition. The famous tax-free maturity is intact, but the price you pay is set by the market, not by RBI. And the exemption applies to redemption, not to a sale.
What are the terms of a Sovereign Gold Bond?
| Term | Value | Condition |
|---|---|---|
| Interest | 2.50% a year, fixed | Paid half-yearly to your bank account |
| Tenor | 8 years | Redeemed at the prevailing gold price |
| Early exit to RBI | After the fifth year | Only on a coupon payment date |
| Capital gains at redemption | Exempt | For an individual holder |
| Interest | Taxable at your slab | No TDS is deducted |
| Limit per financial year | 4 kg | Individual or HUF |
| Limit per financial year | 20 kg | Trusts and similar entities |
| Tradable | Yes, if held in demat | On the stock exchanges |
| Loan collateral | Accepted | Banks, financial institutions and NBFCs |
| New issuance | None since February 2024 | Last tranche 2023-24 Series IV |
Terms from the RBI Sovereign Gold Bond FAQ and the RBI bond listing page, read on 6 September 2026. RBI has published no formal notice ending the scheme. It has also issued no tranche since February 2024.
Why is the tax break the whole argument?
Because gold itself is taxed badly. A gain on physical gold or a gold fund held long term is taxed at 12.5%, and short-term gains are taxed at your slab. An SGB held to maturity pays nothing on the capital gain.
Add the 2.5% coupon on top. Physical gold pays no income. A gold ETF pays no income and charges you a fee. The bond pays you to hold it and then exempts the gain. Nothing else in the Indian gold market does both.
The coupon is taxable at your slab, and there is no TDS. That means you must declare it yourself. In the 30% bracket the after-tax coupon is closer to 1.75%, which is still more than physical gold pays.
What changes when you buy on the exchange?
Three things, and all three cut the wrong way. First, price. Listed SGBs trade at a premium or a discount to the underlying gold value, and you take whatever the screen shows. A premium eats into the tax advantage directly.
Second, liquidity. Volumes on most listed series are thin. A large order can move the price against you, and the bid-ask spread is a real cost that no factsheet mentions.
Third, and most important, the exemption. The capital gains exemption applies to redemption of the bond, meaning maturity. If you sell on the exchange, that is a transfer and it is taxed as a capital gain like any other security. Buying on the exchange to sell on the exchange gets you none of the tax benefit.
Should you still buy one?
Only if you will hold it to maturity, and only if you can buy at or near the underlying gold value. Check the day’s gold price against the traded price before you place the order. Our gold rate page carries the benchmark.
Match the maturity to a real need. A series maturing in 2031 is a 2031 asset. If you might need the money in 2028, you are back to selling on the exchange and losing the exemption.
If you cannot get a clean price, the alternatives are honest ones. A gold ETF is liquid and cheap but taxed. Physical gold carries making charges and storage risk. And if you are holding gold you already own, a gold loan is usually a cheaper way to raise cash than selling it.
Frequently asked questions
Can I still buy Sovereign Gold Bonds in 2026?
Not from RBI. The last tranche listed on the RBI bond page is 2023-24 Series IV, issued in February 2024, and no tranche has followed. Existing series trade on the stock exchanges, so you can buy from another holder in demat form. RBI has published no notice formally closing the scheme.
Is the SGB maturity really tax-free?
The capital gain on redemption is exempt for an individual holder, per the RBI FAQ. The 2.5% interest is not exempt and is taxed at your slab, with no TDS deducted. If you sell on the exchange instead of holding to maturity, that is a transfer and the gain is taxable.
What happens if I exit after five years?
Premature redemption to RBI is allowed from the fifth year, but only on a coupon payment date, and you must tell your bank at least a day in advance. This is a redemption rather than a sale, so it is the route that preserves the exemption if you need out early.
Can I take a loan against my SGB holding?
Yes. The bonds are eligible collateral for loans from banks, financial institutions and NBFCs. Lenders apply their own margin, and the loan is priced like any other loan against securities. Compare it against a loan against securities before you take it.
Sources
- Sovereign Gold Bond FAQ — coupon, tenor, premature redemption, taxation, limits and collateral eligibility, RBI — rbi.org.in.
- Sovereign Gold Bonds tranche listing, last issue 2023-24 Series IV — rbi.org.in.
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