The Reserve Bank of India (RBI) has announced the premature redemption price of ₹15,672 per unit for the Sovereign Gold Bond scheme SGB 2021-22 Series-II. According to reports from The Financial Express, the redemption price is calculated based on the simple average of gold closing prices for three business days - May 26, May 27, and May 29, 2026. The bond was originally issued on June 1, 2021, with subscription dates from May 24-28, 2021.
Investors in the Sovereign Gold Bond scheme SGB 2021-22 Series-II stand to gain 227% over the 5 years, achieving an annualized return of 26.7% in this series. As reported by The Financial Express, the bonds were originally priced at ₹4,842 per gram for regular buyers and ₹4,792 per ten grams for online buyers after a discount of ₹50. The bonds have an eight-year duration but investors may redeem them before the fifth year, with premature redemption permitted on the date interest is payable.
A significant change has been introduced in SGB taxation through Budget 2026. According to The Financial Express, capital gains from gold bonds will be exempt from tax if purchased during primary issuance and held for a full 8 years until maturity. However, premature withdrawal through RBI does not qualify for this exemption. Capital gains from SGBs will remain taxable if bought in the secondary market, sold in the secondary market, or redeemed during premature withdrawal windows, regardless of the original purchase method.
The redemption price is calculated under RBI rules, using the average price of 999 purity gold of the last three business days published by the India Bullion and Jewelers Association (IBJA). As reported by The Financial Express, SGBs have an eight-year duration, but investors may redeem them before the fifth year. Premature redemption is permitted after the fifth year from the date of issue, on the date when interest is payable, making the due date for this tranche June 1, 2026.
