SGB Scheme 2023-24 (Series 3 & 4): Should You Invest?

SGB 2023-24 Series 3 Dates

SGB 2023-24 Series 3 will be open for investment from Dec 18-22, 2023 & will be allotted on Dec 28, 2023.

SGB 2023-24 Series 2 Dates

SGB 2023-24 Series 4 will be open for investment from February 12-16, 2024 & will be allotted on February 21, 2024.

How is the SGB Issue Price Determined?

The issue price is the average closing price of 99.9% pure gold over the last three business days, as published by the IBJA.

What are SGBs?

SGBs are RBI-issued government securities in 1g of gold denominations. SGB price is linked to the market price of gold.

GOI backed investment. Alternative to physical gold without storage costs & making charges. Fixed interest income of 2.5% annually. Tax Benefits.

Benefits of SGBs

SGB Maturity & Exit Options

SGBs have an 8-year maturity period. However, you can redeem SGBs from the RBI tax-free after  5 years.

Who can Invest in SGB

Individuals, HUFs, trusts, universities and charitable institutions. Individuals turned into NRIs can hold SGB till early redemption/maturity.

Minimum & Maximum Investment

Minimum Investment - 1 Gram Individuals & HUFs can invest a maximum of 4 kilograms. Charitable institutions & trusts can invest a maximum of 4 kilograms.

SGBs Tax Treatment

The 2.5% interest income is taxed per your applicable tax slab. Capital gains on SGBs, held till maturity, are tax-exempt.

Capital Gain Tax on  SGBs

If sold before maturity, there will be a tax on STCG according to income slab and LTCG of 10% or 20%+ indexation benefits.

Final Thought

SGBs provide an excellent way to invest in gold without storage hassle. The interest payment above capital gains adds a security layer to balance gold price volatility.