The 2022-23 Sovereign Gold Bond (SGB) – Series IV programme issued by RBI on behalf of the Central Government is now available for purchase. The subscription period starts on March 6, 2023, and ends on March 10, 2023.

The price in SGB is fixed at Rs 5,611 per gram or unit of gold. The government is offering a rebate of Rs 50 per gram for those who apply online and pay digitally, and the SGB issue price has been set at Rs 5,561 per gram for such investors.

Each SGB is equivalent to 99.9% pure gold. Investing in SGB frees investors from related issues, including gold purity, fees, etc. These bonds are considered a physical substitute for gold because they are impurities-free. Since the RBI issues these bonds, there is a “Nil” risk of default.

By default, these bonds have a lock-up period of eight years. At the same time, the government allows investors to redeem their investments five years in advance. Capital gains tax does not apply on amounts due after eight years. However, capital gains tax applies to the amount redeemed early. Also, SGB is tax-free as there is no securities transaction tax on SGB transactions.