Result
Total return after 8 years
₹135,000
- Investment₹75,000
- Gold value at maturity₹120,000
- Capital gain (TAX-FREE at maturity)Section 47(viic) — no capital gains tax if held till maturity₹45,000
- 2.5% annual interest totalTaxable at slab rate₹15,000
- Effective CAGR7.62%
How to use this calculator
- Enter grams of gold you plan to buy.
- Enter current SGB issue price per gram.
- Enter expected sell price after 8 years.
- Read total return + tax-free capital gain.
About this tool
Sovereign Gold Bonds are RBI-issued 8-year bonds denominated in grams of gold. Government-guaranteed. Pay 2.5% p.a. interest (semi-annually) on the initial investment PLUS you gain from any gold price appreciation. Massive tax advantage: capital gains at maturity are TAX-FREE under Section 47(viic) of Income Tax Act — dramatically better than physical gold (20% LTCG with indexation) or gold ETF (12.5% LTCG post-July-2024). Best gold investment for Indian retail investors seeking gold exposure without storage/purity concerns. New tranches issued 4-6 times a year — subscribe via SBI/HDFC/ICICI/Zerodha at issue with 1% online discount.
Frequently asked
2.5% per annum on the INITIAL INVESTMENT amount (not on current market value). Paid semi-annually to your bank account. This interest is TAXABLE at your slab rate. Effectively, you get both interest income AND capital appreciation on gold price.
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