MUMBAI: The Reserve Bank of India (RBI) has set the redemption price of the first tranche of sovereign gold bonds (SGBs) at Rs4,837 per unit. SGBs mature eight years after their issue date, however the RBI allows premature redemption after the fifth year. This premature redemption window opens every six months on each coupon payment date. Premature redemption of the 1st tranche of SGBs became possible in November 2020 and the next payment date is today -- 29 May. However, there is a lack of clarity on taxation on premature redemption.

Source: Mint May 29, 2021 05:15 UTC