SGB 2019-20 Series X Opens For Early Redemption: Check Other Dates

The Sovereign Gold Bond (SGB) 2019-20 Series X, first issued on Mar. 11, 2020, is available for premature redemption, starting from Mar. 11, 2025. Investors opting for early withdrawal will receive Rs 8,596 per unit.

This redemption option has become accessible after the mandatory holding period of five years. The bonds offer an annual interest rate of 2.5%, credited semi-annually. The interest earnings are subject to taxation as per the investor's applicable income tax slab.

SGBs have a maturity period of eight years, but investors can choose to redeem them after five years.

Considerations before early redemption

Before opting for early redemption, investors must carefully consider the decision, as redeeming the bonds before maturity means forgoing potential gains from gold price appreciation and interest accrual for the remaining tenure. Investors, who hold SGBs until maturity, can benefit from the exemption of long-term capital gains tax (LTCG).

Tax on early redemption

SGBs redeemed or matured through the Reserve Bank of India (RBI) are not classified as transfers and are exempt from capital gains tax. But, if SGBs are sold in the secondary market before maturity, they will be subject to capital gains tax based on the holding period.

If the bonds are retained for more than a year, any profits will be subject to a 12.5% long-term capital gains tax, with no indexation benefit. But, if sold within a year, the gains will be treated as short-term and taxed according to the investor's applicable income tax slab.

Redemption request

To start the redemption process, investors must submit a request at least 30 days in advance through their bank, post office, National Securities Depository Ltd. (NSDL), Central Depository Services Ltd. (CDSL) or the Stock Holding Corporation of India Ltd.

Premature withdrawal schedule

The RBI has published a schedule for premature withdrawals, covering the period from April 1, 2025, to September 30, 2025. Investors can redeem their units on designated dates each month within this timeframe. These dates may be subject to change in case of unforeseen public holidays.

1. 2017-18 Series III: Issued on October 16, 2017 – Premature redemption on April 16, 2025

2. 2017-18 Series IV: Issued on October 23, 2017 – Premature redemption on April 23, 2025

3.  2017-18 Series V: Issued on October 30, 2017 – Premature redemption on April 30, 2025

4.  2017-18 Series VI: Issued on November 6, 2017 – Premature redemption on May 6, 2025

5. 2017-18 Series VII: Issued on November 13, 2017 – Premature redemption on May 13, 2025

6. 2017-18 Series VIII: Issued on November 20, 2017 – Premature redemption on May 20, 2025

7. 2017-18 Series IX: Issued on November 27, 2017 – Premature redemption on May 27, 2025

8. 2017-18 Series X: Issued on December 4, 2017 – Premature redemption on June 4, 2025

9. 2017-18 Series XI: Issued on December 11, 2017 – Premature redemption on June 11, 2025

10. 2017-18 Series XII: Issued on December 18, 2017 – Premature redemption on June 18, 2025

11. 2017-18 Series XIII: Issued on December 26, 2017 – Premature redemption on June 26, 2025

12. 2017-18 Series XIV: Issued on January 1, 2018 – Premature redemption on July 1, 2025

13. 2018-19 Series I: Issued on May 4, 2018 – Premature redemption on May 3, 2025

14. 2018-19 Series II: Issued on October 23, 2018 – Premature redemption on April 23, 2025

15. 2018-19 Series III: Issued on November 13, 2018 – Premature redemption on May 13, 2025

16. 2018-19 Series IV: Issued on January 1, 2019 – Premature redemption on July 1, 2025

17. 2018-19 Series V: Issued on January 22, 2019 – Premature redemption on July 22, 2025

18. 2018-19 Series VI: Issued on February 12, 2019 – Premature redemption on August 12, 2025

19. 2019-20 Series I: Issued on June 11, 2019 – Premature redemption on June 11, 2025

20. 2019-20 Series II: Issued on July 16, 2019 – Premature redemption on July 16, 2025

21. 2019-20 Series III: Issued on August 14, 2019 – Premature redemption on August 14, 2025

22. 2019-20 Series IV: Issued on September 17, 2019 – Premature redemption on September 17, 2025

23. 2019-20 Series V: Issued on October 15, 2019 – Premature redemption on April 15, 2025

24. 2019-20 Series VI: Issued on October 30, 2019 – Premature redemption on April 30, 2025

25. 2019-20 Series VII: Issued on December 10, 2019 – Premature redemption on June 10, 2025

26. 2019-20 Series VIII: Issued on January 21, 2020 – Premature redemption on July 21, 2025

27. 2019-20 Series IX: Issued on February 11, 2020 – Premature redemption on August 11, 2025

28. 2019-20 Series X: Issued on Mar. 11, 2020 – Premature redemption on September 11, 2025

29. 2020-21 Series I: Issued on April 28, 2020 – Premature redemption on April 28, 2025

30. 2020-21 Series II: Issued on May 19, 2020 – Premature redemption on May 19, 2025

31. 2020-21 Series III: Issued on June 16, 2020 – Premature redemption on June 16, 2025

32.2020-21 Series IV: Issued on July 14, 2020 – Premature redemption on July 14, 2025

33.2020-21 Series V: Issued on August 11, 2020 – Premature redemption on August 11, 2025

34. 2020-21 Series VI: Issued on September 8, 2020 – Premature redemption on September 8, 2025