Hi Folks,
Do SGB’s brought from open market fetch the same annual interest rate(2.50%) as SGB’s bought during offer period?
Also Do they have the same tax implications? like if held for 8yrs are they tax free?
Thanks,
Kevin
Yes, you get paid the same Interest of 2.5%.
If you subscribe to the new issue and hold until maturity, there will be no capital gains tax.
Regarding benefit of exemption from capitals gains for purchasing from secondary market, there isn’t clarity over this.
I read this article recently, and here it claims the interest will not be paid also no CG exemption. Has anyone purchased from secondary market and received the interest?
Link: https://www.financialexpress.com/money/gold-prices-fall-below-sovereign-gold-bond-issue-price-should-you-buy-it-from-the-secondary-market/2207080/
In 2019 I got this reply. They said title owner will get interest. Also they didn’t specifically mention from where should I purchase it.
Here I assumed title owner is the person who bought it initially. But I was wrong. Last year I sold some sgb, and from last 1 year I am not getting interest for those.
Now 2 things can happen, either the person who bought it from secondary market is getting interest amount, or govt is eating up that interest.
You’re eligible to receive the 2.5% interest, even if you buy the SGB from secondary market.