The Sovereign Gold Bond Scheme FY 2020-21 calendar or, also called as the Sovereign Gold Bond Scheme FY 2020-21 schedule for the current financial year 2020-2021 has been announced by the government of India (via RBI link).
The SGB 2020 or Gold Bonds or Sovereign Gold Bonds will be issued in 6 tranches (or called as Sovereign Gold Bond Series) from April 2020 to September 2020, i.e. one tranche every month. Some even call it the RBI Gold Bond 2020.
Here is the complete calendar of Sovereign Gold Bond Scheme (FY 2020-21) with release dates of various series of Sovereign Gold Bonds for 2020-2021.
Sovereign Gold Bond Scheme (FY 2020-21)
The Six 6 issues (tranches) of Gold Bonds or SGB series 2020 will be made available for investors as follows:
- Sovereign Gold Bond FY2020-21 Series I: 20 to 24 April 2020
- Sovereign Gold Bond FY2020-21 Series II: 11 to 15 May 2020
- Sovereign Gold Bond FY2020-21 Series III: 8 to 12 June 2020
- Sovereign Gold Bond FY2020-21 Series IV: 6 to 10 July 2020
- Sovereign Gold Bond FY2020-21 Series V: 3 to 7 August 2020
- Sovereign Gold Bond FY2020-21 Series VI: 31 August to 4 September 2020
So those are the Gold Bond issue dates for the SGB series of FY 2020-21.
And this list being the complete schedule of Gold Bond Series 2020-21 in India, you now know the dates of subscription for sovereign gold bond series 1, dates of subscription for sovereign gold bond series 2, dates of subscription for sovereign gold bond series 3, dates of subscription for sovereign gold bond series 4, dates of subscription for sovereign gold bond series 5, dates of subscription for sovereign gold bond series 6 in FY 2020-21.
You can read about the various series here:
- Sovereign Gold Bond FY2020-21 Series 3
- Sovereign Gold Bond FY2020-21 Series 4
- Sovereign Gold Bond FY2020-21 Series 5
- Sovereign Gold Bond FY2020-21 Series 6
Sovereign Gold Bond Features Benefits (FY 2020-21)
Now let’s just check few more important points about the Sovereign Gold Bond Series (FY 2020-21) in India before you invest in gold bonds:
- Gold bonds scheme FY2020-21 is available only to Resident Indians. So that is your answer to Who can invest in sovereign gold bond 2020-21. NRIs cannot invest in the Sovereign Gold Bond Scheme FY 2020-21 or SGB 2020.
- The issue price of each of the Sovereign Gold Bond 2020 series will be fixed by the government of India. It is quoted on a per gram basis, i.e. as Sovereign Gold Bond price per gram.
- It is generally calculated as the simple average of closing price of gold of 999 purity for the last 3 working days of the week preceding the subscription period. A discount of Rs 50 per gram on the issue price of the Gold Bonds is offered to investors applying online and paying via digital mode. So that is about the price of sovereign gold bond 2020 and gold bond rates.
- The tenure of the Sovereign Gold Bond scheme 2020-21 is 8 years.
- However, after completion of the 5th year, an investor can take the exit option on the interest payment dates of the 6th, 7th year too. No redemptions allowed before that. What will be the redemption price? It will be approximately equal to the simple average of the closing price of gold of 999 purity during the previous week.
- But the bonds can be sold in the secondary market before the 5th year too for those looking to sell gold bonds before 5 years. But do note that the market price of sovereign gold bond today or gold bond rate today may be higher or lower than the issue price for any of the tranches
- That is how to redeem Sovereign Gold Bond Scheme FY 2020-21 before 8 years? And how to exit Sovereign Gold Bond Scheme FY 2020-21 before 5 years? And if you are looking to find the RBI gold bond rate today, then you can check the stock exchanges for sale and purchase of sovereign gold bonds at the current prices.
- Since we are talking about sale, you should also note that you can even buy sovereign gold bond in secondary market in India. The purchase prices for SGB 2020 will be based on demand-supply of that day and you will have to find the latest sovereign gold bond price in secondary market in FY2020 on the day you plan to purchase gold bonds.
- So do check the exchanges to find out the Sovereign Gold Bond price per gram for previous tranches like SGB bonds 2016, SGB bonds 2017, SGB bonds 2018, SGB bonds 2019, etc.
- This is the most unique part about this gold investment option of SGB 2020. The gold bond interest rate. The Sovereign Gold Bonds pay a fixed interest rate of 2.50% per annum payable semi-annually on the original investment value. So this is the only gold investment option that also pay interest.
- Do note that 2.5% interest will be paid on the original investment amount and not the current value of your investments. So if you invested at Rs 4000 but the current value is Rs 4500, then interest will be paid on Rs 4000 which is the initial investment amount.
- So basically, you can get 2 types of returns from Sovereign Gold Bond scheme 2020. The first is regular interest income of 2.5% per annum, and the second is capital appreciation.
- What is the Minimum Investment in Sovereign Gold Bond (2020-21)? The minimum investment of 1 gram of gold is required.
- What is the Maximum Investment in Sovereign Gold Bond (2020-21)? The maximum investment or subscription is 4 kgs per person per financial year. Do note that this annual investment limit is combined limit for all investment under different tranches and those purchased via the secondary market.
- What about Taxation of Interest Income from Sovereign Gold Bond Scheme FY 2020-21? The 2.5% Interest Income from Gold Bonds is taxable as per the income tax slab. So for someone in 10%, 20%, or 30% tax bracket, the pre-tax 2.5% returns will be converted into the post-tax return of 2.25%, 2% and 1.75% respectively.
- What about Taxation of Capital Gains from Sovereign Gold Bond Scheme FY 2020-21? If you redeem the SGB series Gold Bond after the 5th year, i.e. once you become eligible to redeem it at the end of 6th, 7th and 8th year, then any capital gain arising due to redemption after the 5th year is exempted from any tax. No tax on capital gains after the 5th year redemptions. But if you wish to exit before 5th year and sell on stock exchange / secondary market, then the gains will be considered as capital gains. This sale itself has two aspects. First is if you sell before 3 years (36 months) and have capital gains, then such capital gain will be taxed as per your income tax slab. But if you sell the bonds after 3 years but before maturity, then any capital gain arising will be taxed at 20% with indexation.
- Read more about latest rates of Taxation of gold in India.
- Where to buy Sovereign Gold Bond Scheme FY 2020-21 or SGB 2020? The gold bonds will be sold and can be purchased via scheduled commercial banks, i.e., you can buy sovereign gold bond online ICICI or you can also buy sovereign gold bond online SBI. You can even buy RBI Gold bonds at designated post offices. Stock Holding Corporation of India Ltd. (SHCIL), stock exchanges like NSE, BSE. This is the issue-schedule for 2020-2021.
That’s about the Sovereign Gold Bonds scheme FY 2020-21.
This is one of the newer ways to invest in gold. The majority people in India buy physical form, i.e. gold jewellery and gold coins. Other options is to invest via Gold ETFs or Gold Funds. And of course invest via Sovereign Gold Bonds.
Hopefully, you would have found this note on Sovereign Gold Bond Scheme 2020-21 Schedule Calendar useful. It not only tells you about the gold bond issue date 2020, but also tells you about the issue and subscription dates of all the 6 series of Sovereign Gold Bond 2020-21, namely sovereign gold bond series 1, sovereign gold bond series 2, sovereign gold bond series 3, sovereign gold bond series 4, sovereign gold bond series 5 and the sovereign gold bond series 6 in FY 2020-21.
Further Reading – Using Gold ETFs & Gold Bonds for Long Term Portfolio.