SGB 2021-22 Series V: 223% Gain by Aug 2026
By ThePip Desk
Sovereign Gold Bond 2021-22 Series V investors can achieve a 223% gain by August 17, 2026, with redemption at ₹15,295 per unit. Learn about impressive returns.
Great news if you’re an investor in the Sovereign Gold Bond (SGB) 2021-22 Series V. You can redeem your bonds prematurely on August 17, 2026, with the Reserve Bank of India (RBI) setting the price at ₹15,295 per unit.
Here’s a quick look at the impressive returns:
- For online investors who bought at ₹4,740, your investment could become ₹15,295, an absolute capital gain of about 223% or ₹10,555 per unit.
- Other investors who paid ₹4,790 per unit are also seeing a gain of roughly 219%, or ₹10,505 per unit.
These figures show a substantial increase on your initial investment over the holding period. Remember, this capital gain calculation does not include the 2.5% annual interest you receive separately on your SGBs.
How Your Redemption Price Was Set
The ₹15,295 redemption price isn’t random; it’s based on specific market data. It reflects the simple average of the closing price of 999-purity gold over three business days: August 12, 13, and 14, 2026, using prices published by the India Bullion and Jewellers Association (IBJA).
Important Redemption Deadlines
If you planned to redeem prematurely, you needed to act within a specific timeframe. The request submission window for this tranche was from July 17 to August 7, 2026. Unfortunately, if you missed this window, you cannot initiate a fresh premature redemption request on the actual redemption date.
Understanding the New Tax Rules
It’s crucial to understand how tax rules affect your SGB gains, especially if you’re considering premature redemption. A significant change came into effect from April 1, 2026, as part of the Union Budget 2026.
- Capital gains exemption now only applies if you subscribed to the SGB at its original issue and held it continuously until its full eight-year maturity.
- Premature redemptions made after April 1, 2026, no longer qualify for this exemption.
- Long-term capital gains from such premature redemptions are generally taxed at 12.5% without indexation.
- The 2.5% annual interest you earn on SGBs is still taxable at your applicable income-tax rate.
These changes highlight the importance of understanding the fine print of your investments. Always stay informed about tax implications to make the best decisions for your financial future.