Sovereign Gold Bond (SGB)

The Union Budget 2026-27 has clarified that the capital gains tax exemption on sovereign gold bonds will not apply to investors who purchase them in the secondary market and hold them to maturity.

  • SGBs are government securities denominated in grams of gold.
  • They are substitutes for holding physical gold.
  • The Bond is issued by Reserve Bank on behalf of Government of India.
  • SGB is free from issues like making charges and purity in the case of gold in jewellery form.
  • The bonds are held in the books of the RBI or in demat form eliminating risk of loss of ....
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