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Under the proposed change, the tax exemption will only apply if you purchase the Sovereign Gold Bond at its initial issuance by the RBI
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Moneycontrol•01-02-2026, 14:54

SGB Tax Rules to Change: What Investors Need to Know by April 2026

  • •Tax-free maturity benefit on Sovereign Gold Bonds (SGBs) will apply only if purchased directly from RBI at original issue and held until maturity.
  • •The amendment takes effect on April 1, 2026, for the 2026-27 tax year and subsequent years.
  • •Finance Bill 2025 specifies capital gains exemption for individuals holding SGBs from original issue to maturity.
  • •SGBs are government-backed bonds issued by RBI, offering investment in gold with a 2.5% annual interest and an eight-year maturity with a five-year early exit option.
  • •Investors buying SGBs from the secondary market may not qualify for capital gains tax exemption at maturity under the new rules.

Why It Matters: New SGB tax rules from April 2026 limit capital gains exemption to original investors holding till maturity.

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