Sovereign Gold Bond Scheme 2021-22 (Series-I) – Issue Price and Details

Sovereign Gold Bond Scheme 2021-22 Series I - ReviewSovereign Gold Bond Scheme 2021-22 (Series-I) – Issue Price and Details

Central Government, in consultation with RBI has issued the Sovereign Gold Bond calendar now for the year 2021-22. They would be issuing these gold bonds in 6 tranches / series till Sep 2021. Sovereign Gold Bond Scheme – Series-I (Tranche I) of 2021-22 would open for subscription on May 17, 2021. Sovereign Gold Bonds (SGB) 2021-22 Price is based on the average price of the preceding 3 days of the issue opening date which is fixed by Govt of India. These gold bonds offer Rs 50 per gram as discount to investors who invest online in demat form. In the article, we would provide Sovereign Gold Bond Scheme 2021-22 Series-I issue price and issue details.

Sovereign Gold Bond Scheme 2021-22 (Series I) – Issue Price, Dates and Details

Sovereign Gold Bonds for 2021-22 dates is issued by RBI wherein gold bonds would be issued in 6 Series starting from May, 2021 to Sep, 2021.

SGB Series-I of 2021-22 would open for subscription on Monday, May 17, 2021 and closes by Friday, May 21, 2021.

The issue price is fixed at Rs 4,777 per gram. Investors who are investing through online/demat form would get a discount of Rs 50 per gram. Means this would be available for Rs 4,727 post discount.

These bonds are issued by RBI on behalf of the Government of India, hence are considered as one of the safest investment options.

The settlement date for Series-1 of these gold bonds is 25th May 2021. Means, these gold bond units would be issued to investors on May 25, 2021 after subscription is closed.

These bonds would carry 2.5% interest rate per annum, which is payable every half year.

The sovereign gold bond scheme has a tenure of 8 years. However, one can exit from these bonds after 5 years on subscription dates.

These Sovereign Gold Bonds are issued in denominations of 1 gram of gold and in multiples of 1 gram.

Minimum investment is equivalent to 1 gram of gold.

The maximum amount of subscription is, 4 kg for individuals, 4 kg for HUF and 20 Kg for trusts and similar entities per financial year (April-March).

How to apply for Sovereign Gold Bonds Aug 2020 issue?

The gold bonds will be sold through all banks (except Small Finance Banks and Payment Banks), Stock Holding Corporation of India Limited (SHCIL), designated post offices, and recognized stock exchanges i.e., NSE/BSE.

I would recommend you buy through demat form so that everything is online, and you also get a Rs 50 discount per gram.

Should you pay tax on Sovereign Gold Bonds?

One need to check tax aspects, both from capital gains as well as from interest received. You can check our earlier article which provides complete insights into tax on sovereign gold bonds.

Who can invest in these Sovereign Gold Bonds?

If you fall under any of the below categories of investors, you can invest in these gold bonds.

1) Investors who want to diversify portfolio between equity, debt and gold can invest in Sovereign Gold Bonds. Alternatively, one can look at investing in gold mutual funds.

2) Investors who want to accumulate gold for future purpose (gift ornaments to a spouse or daughter) can invest in sovereign gold bond scheme.

You would have seen that gold prices have fallen in the recent past and bounced back now. Gold might provide stable returns in the medium to long term.

Can I buy Sovereign Gold bonds in the secondary market?

Its indeed a best option. One can check our article earlier about some of the best sovereign gold bonds from the secondary market.

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Suresh KP

5 comments

  • sivaraman

    Sir,

    Please throw some light on below:

    1. this 2.5 % interest on Gram or the amount invested? Also is this 2.5% per annum?
    2. How about TDS?

    Assume if I’m opting 8 gms today it comes around 37k. After 8 years if gold price is doubled can I redeem on that days market price. Also will I be able to get gold or as money.

    Request guidance

    • 1) 2.5% per annum 2) You would get equivalent gold value in rupees on the date of maturity. You can purchase immly physical gold if you want on maturity date 3) TDS would not be deducted, but you need to pay if your income is taxable based on you income tax slab

  • Didar S Grewal

    What will be the return in theses gold bonds.Return of 2.5 % is too low.Just wondering why any body will buy these.

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