How to redeem SGB on maturity (i.e. after 8 years)?

Stocks
1

Suppose I bought SGB (for instance 10 grams on Subscription Date : April 20-24, 2020 and Issuance Date : April 28, 2020) and hold it till maturity. I would like to know as how to redeem SGB on maturity (i.e. after 8 years). Will it automatically get sold in market after completion of 8 years or selling order has to be placed manually. In later case how would I know the exact date of maturity for SGB. Will it be on April 28, 2028 ? Besides, regarding interest credit that happens semi annually, does the amount gets credited in trading account or it gets credited directly to the linked bank account of the customer ? I searched over internet but didn’t get the answer. Would appreciate for help.

2

You can refer to the RBI’s FAQs on SGB. All the basic questions have been answered there. Hope it would help you to have more information.

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3

It’s not mentioned there his to redeem sgb after 8 yrs

4

Just like other bonds, they will disappear from tour demat and money will be deposited in your account…

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5

this made me smile :sweat_smile:

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6

@Sanjukumar.K @siva @Quicko
I am writing to seek clarification regarding the tax implications and FIFO (First-In-First-Out) treatment of my Sovereign Gold Bonds (SGB) holdings.
I currently hold 300 units of SGB purchased in 2022. Additionally, I purchased 50 more units of the same SGB in 2026 through the Kite platform.
I understand that if I sell 100 units from my holdings via Kite, the FIFO method will be applied, and accordingly, the units purchased earlier in 2022 will be considered sold first.
In this context, I would like to confirm the following:
If I proceed with selling 100 units now, will it be treated as the sale of my older 2022 holdings under FIFO?
For the remaining units that I continue to hold until maturity in 2030, will there be any tax liability on redemption?
Is the capital gains from such redemption fully exempt from tax if held until maturity, as per current regulations?
Since I purchased an additional 50 units in 2026, will there be any difference in tax treatment between the units purchased in 2022 and those purchased recently via Kite if both are held until maturity?