New Delhi. The government has started preparations to implement new rules for those investing in gold. Now the rules of tax exemption under the Sovereign Gold Bond (SGB) scheme are going to change. This will especially affect those investors who buy gold bonds through the stock exchange.
What is the new rule?
Earlier, there was no capital gains tax on holding the bonds for eight years, whether the bonds were purchased directly from the government or from the secondary market. According to the new rule, the benefit of tax-free maturity will be available only to those investors who have purchased the bonds directly from RBI. That is, after April 1, 2026, tax will have to be paid on maturity on bonds received in the secondary market or as a gift from an individual.
impact on investors
Suppose an investor buys a bond from the exchange for ₹7,000 and on maturity it becomes worth ₹11,000. Earlier the entire ₹4,000 profit was tax-free. Now 12.5% long term capital gains tax will be levied on it, i.e. ₹ 500 tax will have to be paid.
two types of investors
Primary Investor: Investors who buy bonds directly from the RBI have the right to receive tax-free returns on maturity.
Secondary Market Investors: Tax will have to be paid on bonds purchased from the exchange or from anyone on maturity, while the interest will be 2.5%.
strategy may change
Experts believe that this change may affect the liquidity of the secondary market. Now the scheme of allowing investors to avail tax-free benefits by buying bonds at concessional rates will no longer work.
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