In the next six months, from October 2024 to March 2025, 30 Sovereign Gold Bonds (SGBs) will be eligible for redemption. Some of these bonds can be redeemed early because they have been held for five, six, or seven years.
Since there may not be many new SGBs launched in the near future, fewer investors might choose to redeem their bonds early during this period. Experts suggest that investors should stick to their planned investment strategy rather than making quick decisions based on the chance to redeem early.
Why Early Redemption Can Be Beneficial
One big advantage of redeeming your SGBs early through the Reserve Bank of India (RBI) is that you won’t have to pay capital gains tax on the profits. However, if you miss this chance and decide to sell your bonds on the stock exchange instead, any profit you make will be taxed.
RBI’s Schedule for Early Redemption
The RBI provides a list twice a year that shows which SGBs can be redeemed early. According to the latest list, 30 SGB series can be redeemed early between October 2024 and March 2025. It’s important to keep track of these dates to make sure you get the best returns and avoid unnecessary taxes.
Should You Sell or Hold?
Deciding whether to sell your SGBs early or hold onto them depends on your long-term investment goals. Out of the 30 SGB series, seven will be completing their 5.5, 6.5, and 7.5-year terms in the next six months. It’s uncertain if these will be included in the early redemption list, so it’s important to stay informed.
In short, think carefully before deciding to sell or hold your SGBs. Early redemption can save you on taxes, but sticking to your original investment plan might give you better results in the long run.
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