Government Bonds

Sovereign Gold Bond (SGB) Calculator

The best way to buy gold in India. Calculate your dual returns: 2.5% fixed cash interest plus completely tax-free capital gains on maturity.

SGB Investment Details
g

Max limit is 4 Kg per individual.

Historical gold appreciation is roughly 7-9% CAGR.

Returns Breakdown

Total Maturity Value

₹12,00,000

100% Tax Free

Initial Investment₹6,50,000
Total Interest (2.5% p.a.)+₹1,30,000
Capital Appreciation+₹5,50,000
Absolute Return104.62%

Why SGBs are the Ultimate Gold Investment

  • The 2.5% Bonus: If you buy physical gold or Gold ETFs, you only make money if the price of gold goes up. SGBs pay you a guaranteed 2.5% interest every year (paid semi-annually) on your initial investment amount, regardless of gold prices.
  • Zero Capital Gains Tax: This is the biggest benefit. If you hold the SGB until its 8-year maturity, the entire capital appreciation (profit from the gold price going up) is 100% tax-free under Section 47 of the Income Tax Act. (Note: The 2.5% annual interest is taxable as per your slab).
  • No Storage Costs: Unlike physical gold, there are no making charges (which waste 10-15% of your money) and no bank locker fees. SGBs sit securely in your Demat account.