RBI Announces SGB Premature Redemption Calendar for 2026-27: Check All 32 Eligible Gold Bond Tranches and Taxability Thereof

By CA Ankit Gulgulia (Jain)

Published on September 3, 2026

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If you’re sitting on Sovereign Gold Bonds (SGBs) bought a few years ago, there’s fresh news worth your attention. The Reserve Bank of India (RBI) has released the premature redemption calendar covering October 2026 to March 2027, listing 32 SGB tranches — issued between June 2019 and March 2022 — that will become eligible for early exit during this window.

Whether you’re planning to cash out and lock in gains, or simply want to understand your options, here’s a complete breakdown of the dates, the process, and — just as importantly — how the money you receive will be taxed.

A Quick Recap: How SGB Premature Redemption Works

Sovereign Gold Bonds carry a total maturity of eight years, but the government allows investors to exit early — after completing five years from the date of issue. This exit isn’t available on demand throughout the year; it’s only permitted on the specific interest payment dates that RBI notifies twice a year (once for April–September, and once for October–March).

Each tranche gets its own redemption date (the day the bond actually matures for exit) and its own request window — a roughly three-week period before the redemption date during which investors must formally submit their redemption request. Missing this window generally means waiting for the next available date, if any, or holding the bond until final maturity.

Requests can be submitted through the Receiving Office where the bond is held — this could be your bank, SHCIL, a designated post office, a stockbroker, NSDL, CDSL, or your RBI Retail Direct account.

One important caveat from RBI: these dates may shift in case of an unscheduled holiday, so it’s worth double-checking closer to your specific window.

The Full List: All 32 Eligible Tranches (Oct 2026 – Mar 2027)

The calendar spans tranches from 2019-20 (10 series), 2020-21 (12 series), and 2021-22 (10 series). The earliest redemption date is October 15, 2026 (2019-20 Series V), and the latest is March 17, 2027 (2019-20 Series IV).

Source: RBI premature redemption calendar for SGBs, October 2026–March 2027.

How to read this table: Find your tranche name (it’s printed on your Certificate of Holding, or visible in your demat/RBI Retail Direct statement). Note the redemption date and, more importantly, the request window — you must apply within that window to redeem on that date.

How Much Will You Get on Redemption?

The redemption price isn’t fixed in advance. Per RBI’s methodology, it’s based on the simple average of closing gold prices of 999 purity for the three business days preceding the redemption date, as published by the India Bullion and Jewellers Association (IBJA). So the exact payout amount is only known a few days before the actual redemption date.

Given gold’s strong run over the past several years, many investors redeeming tranches from 2019-2020 have realized substantial appreciation — on top of the 2.5% annual interest paid semi-annually throughout the holding period.

Taxability of Sovereign Gold Bonds: What You Need to Know

This is the part that trips up a lot of investors, because SGBs are taxed differently depending on how and when you exit. There are two distinct income streams to think about — interest and capital gains — and each is treated differently.

1. Interest Income — Always Taxable

The 2.5% p.a. interest paid on SGBs (credited semi-annually) is fully taxable under “Income from Other Sources,” at your applicable income-tax slab rate. This holds true regardless of whether you eventually redeem early, hold to maturity, or sell in the market. There’s no exemption on the interest component — only the gains on redemption get special treatment.

2. Capital Gains — Big Rule Change from Budget 2026 (Important for This Calendar)

This is where investors need to pay close attention, because the rule changed materially this year.

Old position (before April 1, 2026): Any redemption of an SGB with the RBI — whether at final maturity or through premature redemption after 5 years — was treated as not a “transfer” under the Income-tax Act, so capital gains were fully exempt. This applied regardless of whether you were the original subscriber or had bought the bond later on the exchange.

New position (effective April 1, 2026 onward): The Finance Act 2026 tightened Section 70(1)(x) of the Income-tax Act, 2025. The capital gains exemption is now restricted to individuals who subscribed to the SGB at original issue and held it continuously until its full 8-year maturity, redeemed through RBI. CBDT’s Budget 2026 FAQs have explicitly confirmed this narrower scope.

Crucially, premature redemption no longer qualifies for the exemption — even for original subscribers. Since Section 70(1)(x) no longer distinguishes premature exit as a special case, any redemption before the 8-year maturity date is now treated as a taxable transfer, and capital gains tax applies just like a normal sale.

All 32 tranches in this October 2026–March 2027 calendar fall after the April 1, 2026 cut-off, so this new, stricter rule applies to every one of them. If you redeem any of these tranches prematurely through RBI’s window, the gains will be taxable — regardless of whether you were the original subscriber.

• Long-Term Capital Gains (LTCG): Since every eligible tranche here has already crossed 5 years (well beyond the 12-month LTCG threshold), gains will be taxed as LTCG — currently at 12.5%, without indexation benefit (indexation was withdrawn for gold-linked assets by the Finance Act 2024).
• No slab-rate STCG applies here, since holding periods on all these tranches exceed 12 months.

3. Capital Gains on Sale in the Secondary Market — Also Taxable

Selling on the stock exchange (NSE/BSE) instead of redeeming with RBI was already taxable before Budget 2026, and remains so:

• LTCG (holding > 12 months): 12.5%, without indexation.
• STCG (holding ≤ 12 months): added to income, taxed at slab rate.

Post-Budget 2026, secondary-market purchasers face an added disadvantage: even if they hold their exchange-bought SGB all the way to final maturity, they still do not qualify for the exemption, since it now requires original-issue subscription.

The Only Route That Still Gets the Exemption

Going forward, the capital gains exemption survives in exactly one scenario: you subscribed to the bond at its original RBI issuance, and you hold it, uninterrupted, all the way to its full 8-year maturity date, redeeming through RBI. Premature redemption, secondary-market purchase, or secondary-market sale — any one of these now breaks the exemption.

Quick Summary Table (Post-Budget 2026, effective April 1, 2026)

The takeaway for this specific calendar: since every one of the 32 tranches listed above is being redeemed prematurely (none has reached its full 8-year maturity), the capital gains on redemption will be taxable as LTCG at 12.5% (no indexation) for all investors, regardless of whether they were original subscribers. This is a meaningful shift from the pre-2026 position where premature redemption via RBI was tax-free — factor this into your redemption-versus-hold decision.

What Should You Do Now?

1. Locate your tranche details — check your Certificate of Holding, demat statement, or RBI Retail Direct portal for the exact series name and issue date.
2. Match it against the table above to find your applicable redemption date and request window.
3. Mark the request window on your calendar and avoid submitting your application on the last day — processing delays or documentation issues can cause you to miss the cutoff.
4. Contact your Receiving Office (bank, broker, post office, NSDL/CDSL, or RBI Retail Direct) ahead of time to confirm the exact submission process they follow.
5. Re-run your tax math before deciding to exit early. Since Budget 2026, premature redemption no longer escapes capital gains tax the way it used to. Weigh the LTCG hit (12.5%, no indexation) against the benefit of locking in gains now versus continuing to hold toward the full 8-year maturity, where the exemption still applies (for original subscribers).

Final Word

SGBs remain a fixed-interest, sovereign-backed way to hold gold, but their standout tax advantage has narrowed considerably after Budget 2026. Where premature redemption through RBI used to be completely tax-free, it is now taxed exactly like a regular capital gain — the only way to still get a zero-tax exit is to hold the bond as an original subscriber all the way to its 8-year maturity. With gold prices having risen significantly since many of these tranches were issued, this is a good moment to run the actual numbers — post-tax — before deciding whether to redeem early or hold on.

As always, since redemption dates can shift due to unscheduled holidays and tax provisions may see further clarification from CBDT, it’s worth confirming the latest position with your Receiving Office and a chartered accountant before making a final decision.

Disclaimer: This article is for informational purposes only and does not constitute investment or tax advice. Please consult a qualified financial advisor or chartered accountant regarding your specific circumstances.

CA Ankit Gulgulia (Jain)

FCA, CWM (AAFM-US), CBV, CIFRS, R-ID, B.COM (H), RV* (IBBI)

Managing Partner at Ankit Gulgulia & Associates, Chartered Accountants. The Firm was setup in 2011 and has offices in Delhi NCR. AGA provides professional services to a large number of Clients both in India and Internationally.

AGA is supported by a well experienced team which include Chartered Accountants, Management Graduates, Company Secretaries, Cost Accountants, Valuers etc.