In the 2026 Budget, the government introduced an important tax change related to Sovereign Gold Bonds (SGB). Earlier, whether SGBs were purchased through the RBI original issue or from the stock exchange (secondary market), if they were held until maturity, capital gains tax was not applicable. However, under the new Budget rules, the capital gains tax exemption will now be available only to investors who purchase SGBs directly in the RBI original issue and hold them until maturity. For SGBs bought from the secondary market (NSE/BSE), the profit earned at maturity will be subject to capital gains tax. This means that investors who buy SGBs from the stock market will have to pay either long-term or short-term capital gains tax. As a result, returns for secondary market investors will decrease, and the opportunity to earn tax-free profits by buying SGBs at a discount will come to an end. This new rule will come into effect from 1 April 2026. The government’s objective is to reduce tax loopholes and provide benefits only to long-term original investors.
Budget 2026 – What is the key update on SGB (Gold Bonds)?
