Why I am unable to buy SGB in Zerodha

Zerodha
101

go to zerodha.com/gold when the next issue of SGB happens, check here for the issuance calendar:
Upcoming Sovereign Gold Bond issues

102

Hello sir,
I have bought SGBAug27 maturity tranche from the secondary market 1 month back. Please clarify my 3 situations below:

  1. If I hold this till maturity, will I be taxed because I purchased from secondary market / did not hold it for a period of 8 yrs?

  2. Supposing if I sell it in secondary market after 1 year, will I be taxed for capital gain?

  3. Suppose I redeem it after 5 years of bond period, will I be taxed?

103

I too had some doubts regarding SGB, so one user sent me the following link, maybe it can help you.
https://m.rbi.org.in/Scripts/FAQView.aspx?Id=109

104

Thanks stonecold. But those faq s doesn’t answer my questions. Any info will be of great help. Thanks

105

Yes, if you make any capital gains you will be taxed but the indexation benefits will be provided to long terms capital gains arising to any person on transfer of bond. In your case if any capital gains those will be taxed accordingly.

Unless you hold from start to maturity , you will be taxed based on short term or long terms, also these are only on profits.

Yes, on your profits, but long term indexation benefits should apply.

106

Hi @siva

As I understood from https://m.rbi.org.in/Scripts/FAQView.aspx?Id=109, capital gains are exempt from tax if the bonds are redeemed on maturity.

And based on the reply I got here, Selling Sovereign Gold Bonds, gains should remain tax free on maturity even if bought from the secondary market, which seems contradictory to your first answer.

Could you please clarify if gains are tax exempt or taxable at redemption on maturity, if bought from the secondary market?

107

I don’t think so it will tax free if one buy from secondary market and held till maturity, one can buy 1 year before maturity and can claim right which defeats the whole purpose. Let me try finding it out, you can also check with CA if you know anyone.

108

Capital gains come into picture only if you ‘transfer’ the bonds which is when you sell them to someone else in secondary market. If you let them mature, it is tax exempt as per that RBI link. So it doesn’t matter whether u buy it from secondary market or directly from Govt, u pay taxes only if you sell it in secondary market…

109

Hi akshit and Siva,
Pls refer I found in internet.

But not sure as no other site mentions this

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110

Hi @AJ007, thank you for responding to my query again and clearing up this doubt.

@siva, it does seem like it remains tax free on redemption at maturity even if the bond was bought from the secondary market, with further backing from the link @Vijay_Shankar has helpfully posted. I will try confirming the same with a CA when possible.

1 Like
111

Thanks for clarifying on SGB Taxes Siva, Will I get the interest on the SGB’s bought from Secondary market? Like: I bought SGBAPR28I-GB today, will I be entitled for an annual interest of 2.5% on this SGB unit bought from secondary market? Thanks!

112

Yes, you will receive directly in to your bank account.

113

If we buy before 1 year and hold it till maturity, it doesn’t come under the category of LTCG at all.

114

Thanks @siva, @AJ007 and @akshit for your thoughts. Were anyone of you able to get in touch with any good CA and find out our case? Any credible info will be of big help please.

115

No, it won’t.

116

I managed to write to the RBI and got a response from them.

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1 Like
117

@Siva I applied for SGB in this latest tranche and received the certifictae. however I am not able to see it in my account. Could you please let me where I can see the latest tranche of my gold.

Thanks!!!

118

Until SGB’s are listed in market, you won’t see them in Kite holdings, you can see them in Holdings on Console.

119

Thanks for the response I will check.

120

When would this get listed in Market?