Sovereign Gold Bond (SGB)

SGB or Sovereign Gold Bonds are government securities denominated in grams of gold, a great and safe alternative to holding physical gold. By investing in them you can benefit from gold price appreciation, get 2.5% guaranteed interest and enjoy tax benefits.

You can invest in SGB from both our mobile and web platforms, simply follow these steps?

1. Login to your Upstox account by clicking on this link : Account upstox
2. Go through the details of the SGB before investing in them
3. Click on 'Apply'
4. Select payment mode and complete the payment
5. Done! Your order has been placed

Next, we will send your order to the Exchange on the application closing date. If all details of your application are correct, you will get to know about your allotment status by 20th September 2023 and the units will be transferred to your Demat account. In case your application fails, the order amount will be credited to your account within one working day.

Sovereign Gold Bonds aka SGBs are Government securities denominated in grams of gold, a great and safe alternative to holding physical gold. Why should you invest in them?

• Less Risk, More Security: Backed by RBI and GOI.
• Dual Returns: Gold price appreciation + 2.5% interest.
• Tax-Friendly: Redeem tax-free on maturity.
• Hassle-Free: Zero GST, zero brokerage.
• Exclusive Discount: Get ₹50 off on Upstox!

Sovereign Gold Bonds aka SGBs are Government securities denominated in grams of gold, a great and safe alternative to holding physical gold. Here are its benefits:

• Less Risk, More Security: Backed by RBI and GOI.
• Dual Returns: Gold price appreciation + 2.5% interest.
• Tax-Friendly: Redeem tax-free on maturity.
• Zero expenses: Zero GST, zero brokerage.
• Exclusive Discount: Get ₹50 off on Upstox!

SGBs (Sovereign Gold Bonds) are taxed differently at different stages, including acquisition, interest income, and capital gains.

• Acquisition: When you purchase SGBs, there is no tax on the purchase price.
• Interest Income: SGBs provide an annual interest rate. This interest is taxable as per your income tax slab rate. It is added to your income and taxed accordingly. If the interest income from SGBs exceeds Rs. 10,000 in a financial year, the issuer deducts TDS at the rate of 10% before disbursing the interest amount.
• Redemption: When you redeem or sell the SGBs, the capital gains are calculated based on the selling price minus the acquisition cost.
  • If you hold the bonds for more than three years, it is considered a long-term capital gain, and if it is held for less than three years, it is a short-term capital gain, taxed at your applicable income tax slab rate.
  • If you sell SGBs after holding them for more than three years, the capital gains are taxed at a flat rate of 20% with indexation benefits. Indexation adjusts the purchase price for inflation, reducing the taxable gains.
  • If you sell SGBs at maturity, the capital gains are tax free.