Buying SGB on behalf of my parents

If I buy SGB on behalf of my parents would it be taxable for them or for me? Is it legal for me to buy on behalf of my parents? They don’t use demat accounts.

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If it’s on your demat account, all benefits & taxes are yours. Source of funds can be “Gift from parents”.

If you want to be the proxy for your parents, this is a way:

  1. Capital will be gift from parents.
  2. You can gift interest benefits to your parents.
  3. Your parents can fund the associated tax burden as gift to you.

IMO it is best to have them apply for a demat.