Hi just one doubt on SGB
I bought sgb through secondary market which will get mature in 2030 and 2032. However in budget they told after 1st Apr 2026 it will not be tax exempt. Hence my query is i sell this SGB again in secondary market now, what will be my taxation for both long and short term also specify how many months to be considered for short and long term.
I am really confused. Pls clarify.
Hello @sandeep0604
Under the provisions proposed in Budget 2026, Sovereign Gold Bonds (SGBs) purchased from the secondary market will no longer qualify for capital gains tax exemption on redemption at maturity after 1 April 2026.
Accordingly, any capital gains will be taxable as Long-Term Capital Gains (LTCG) at a flat rate of 12.5% (without indexation) if the holding period exceeds 12 months, or as Short-Term Capital Gains (STCG) at your applicable income-tax slab rate if held for 12 months or less.
If you choose to sell the bonds in the secondary market before 1 April 2026, the same 12-month holding rule will determine whether the gains are treated as STCG or LTCG.
Additionally, the annual 2.5% interest received on SGBs continues to be fully taxable each year under the head “Income from Other Sources” at your applicable slab rate.