Tax Change for Secondary Market SGB Buyers w.e.f 1 April 2026
Sovereign Gold Bonds (SGBs) continue to enjoy a key tax advantage, making them an attractive option for investors seeking exposure to gold through financial instruments rather than physical holdings. Under the existing tax framework, capital gains arising on the redemption of Sovereign Gold Bonds are exempt from income tax when the bonds are held till maturity and redeemed as per the scheme’s terms. This exemption provides significant relief to long-term investors and enhances the post-tax returns from SGB investments. However, the exemption is limited strictly to redemption . If Sovereign Gold Bonds are transferred or sold before maturity , the resulting capital gains do not qualify for exemption and are taxed as per the applicable provisions of the income-tax law. It is also important to note that while capital gains on redemption are exempt, the interest income earned on Sovereign Gold Bonds remains taxable in the hands of the investor. 📉 Tax Change for Secondary Market SGB Buy...



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