Sovereign Gold Bonds deliver exceptional returns for early redeemers. The Reserve Bank of India has opened premature redemption for SGB 2020-21 Series-VII on April 20, 2026, allowing investors to exit with over 202% gains from their initial investment. The redemption price stands at Rs 15,254 per unit, compared to the original issue price of Rs 5,051. Online purchasers benefit from an additional 3% discount advantage, pushing total returns to 205%. Beyond capital appreciation, investors have earned 2.5% annual interest throughout their holding period. However, tax implications have changed significantly. Capital gains are now taxed at 12.5% for long-term holdings exceeding twelve months, eliminating the previous exemption for early redeemers. This represents a substantial shift in SGB taxation policy that investors must consider before redeeming.
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