💰 Tax Savings · Tax-free income (Section 10)
Sovereign Gold Bonds — tax-free gold gains
✍️ EaseValue Advisors · Updated 17 Jul 2026 · FY 2025-26
In short
Sovereign Gold Bonds (SGBs) are the most tax-efficient way to hold gold: hold to maturity and the capital gain on redemption is fully tax-free, and you earn 2.5% interest along the way.
The tax breaks
- Redemption at maturity (8 years): the capital gain is fully exempt for individuals.
- 2.5% annual interest: taxable at your slab.
- No making charges or storage cost, unlike physical gold.
If you sell early
Sold on the exchange before maturity → normal capital gains apply (long-term after 12 months at 12.5%). The full exemption is only for holding to maturity.
The law behind it
Section 47(viic) Section 112A
General information for FY 2025-26 (AY 2026-27), not advice on your specific case. Limits, rates and conditions
change with each Finance Act and depend on your facts — confirm before acting. © EaseValue Advisors LLP.
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