SGB 2018-19 Series-II Matures at ₹14,425: Returns, New Tax Rule and What Holders Get

Investors who bought the second tranche of Sovereign Gold Bonds (SGBs) in 2018-19 received their final payout on Friday, October 23, 2026. The Reserve Bank of India fixed the final redemption price at ₹14,425 per unit, where one unit is one gram of gold, against a nominal price of ₹3,146 when the bonds were sold eight years ago. That is a large gain, but the bonds matured under tax rules that changed this year, and holders who exited early in April took home a different deal. Here is the arithmetic.

Key takeaways

• RBI set ₹14,425 per gram as the final redemption price for SGB 2018-19 Series-II, which matured on October 23, 2026, eight years after issue.
• The bond was issued at ₹3,146 a gram, or ₹3,096 for online applicants, so the price gain alone is about 358%, before the 2.5% yearly interest.
• From April 1, 2026, the capital gains exemption applies only to original subscribers who hold until maturity; bonds bought on the exchange can attract tax.

From 2018 to 2026 in one table

On the nominal price, ₹14,425 is 4.59 times the original investment, a gain of ₹11,279 a gram. Online applicants who paid ₹3,096 gained ₹11,329 a gram. Spread over eight years, the price gain alone works out to roughly 21% a year, compounded.

Interest comes on top. For someone who paid ₹3,146, 2.5% a year is about ₹78.65 a gram, credited in two half-yearly instalments of roughly ₹39.33. Over 16 payments that adds up to about ₹629 a gram. A holder of 100 units, for instance, would receive ₹14,42,500 at maturity on an investment of ₹3,14,600, plus roughly ₹62,900 in interest collected over the years, before tax.

Why waiting until maturity paid less in cash

SGBs can be redeemed early after five years, on interest dates. This tranche’s early window on April 23, 2026 paid ₹15,219 a gram, which is ₹794 more than the final price six months later. Gold simply cost more in April than in late October, as measured by the India Bullion and Jewellers Association prices that RBI uses. Another 2018-19 tranche, Series VI, was redeemed early on August 12 at ₹15,102, showing the softer trend through the year.

Tax narrows that gap. Under the amendment explained below, early redemption on or after April 1, 2026 does not qualify for the capital gains exemption, even for an original subscriber. Take an original buyer at ₹3,146 who exited in April. The gain was ₹12,073 a gram. If that is taxed as a long-term capital gain at 12.5%, the rate the NISM explainer cites for holdings above a year, the tax is about ₹1,509 a gram before surcharge and cess, leaving roughly ₹13,710. The holder who waited receives ₹14,425 without capital gains tax. Individual results depend on income, other gains and surcharge, so treat this as an illustration, not tax advice.

The tax rule that changed this year

Under the Income-tax Act, 2025, which replaced the 1961 law from April 1, 2026, section 70(1)(x) exempts gains on the redemption of SGBs. The Explanatory Memorandum to the Finance Bill, 2026 proposed tightening it so that the exemption “shall be available only where the Sovereign Gold Bond is subscribed to by a subscriber at the time of original issue and is held continuously until redemption on maturity”. It says the change takes effect from April 1, 2026, and applies to tax year 2026-27 onwards. In practice:

• Bought at issue in 2018 and held to October 23, 2026: the gain on redemption is exempt.
• Bought later on the stock exchange: the exemption does not apply, so the gain over your purchase price is taxable, even though RBI paid you on maturity.
• Redeemed early, after April 1, 2026: not exempt, because the bond was not held until maturity.
• Interest: always taxable. RBI’s FAQs note that no tax is deducted at source on SGB interest, so holders must report it themselves in their returns.

The memorandum framed the change as ensuring “uniform application” across the many SGB series issued over the years. The NISM explainer notes that some practitioners read the transition rules differently for older cases, so anyone with a large secondary-market holding should check with a tax adviser.

What holders should do now

1. Check the credit. RBI’s FAQs say redemption proceeds and the final interest go to the bank account recorded at the time of purchase. If the money has not arrived and your account has changed, contact the issuing bank, SHCIL office or post office through which you applied.
2. Keep proof of original subscription. Since the exemption now depends on having bought at issue, keep the holding certificate or allotment record alongside the bank statement showing the redemption credit.
3. Plan for the tax return. The redemption and the final interest instalment both fall in tax year 2026-27. Report the interest as income, and if you bought on the exchange, compute the capital gain from your purchase price.
4. Nominees and legal heirs. If a holder has died, the nominee can claim through the receiving office. Without a nomination, an executor, administrator or holder of a succession certificate can claim, according to RBI’s FAQs.

No replacement on offer

Anyone hoping to roll the money into a fresh SGB will not find one. The last tranche was sold in February 2024, and after the February 2025 Budget, finance ministry officials described the bonds as an expensive way for the government to borrow. Asked whether that signalled the end of the scheme, Finance Minister Nirmala Sitharaman replied, “Yes, in a way.” Rising gold prices raise the government’s bill at every redemption, which is exactly why holders have done so well.

Gold exposure is still available through gold ETFs, gold mutual funds and physical gold, but none of them offers the 2.5% interest or the maturity tax exemption that made SGBs unusual. Several more tranches issued from 2018 onwards will reach early-exit dates or full maturity over the next few years, and RBI announces each price a day before payment. For more on markets, banking and personal finance, see our Business section.

Sources

• RBI: Final redemption price for SGB 2018-19 Series-II due on October 23, 2026 (press release, October 22, 2026)
• RBI: Sovereign Gold Bond 2018-19 Series II issue price (press release, October 12, 2018)
• RBI: Premature redemption price for SGB 2018-19 Series-II due on April 23, 2026
• RBI: Premature redemption price for SGB 2018-19 Series VI due on August 12, 2026
• RBI: Frequently asked questions on Sovereign Gold Bonds
• Explanatory Memorandum to the Finance Bill, 2026 (Union Budget, PDF)
• NISM: Sovereign Gold Bond taxation after Budget 2026
• Outlook Business: Govt likely to discontinue Sovereign Gold Bond schemes, confirms finance ministry (February 2025)

Drafted with AI assistance; fact-checked and edited by Ajay Mahawar, Taaza Khabar.