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Sovereign gold bonds: The Union Budget 2026 did not just deliver a setback for the Indian stock market traders dealing in the futures and options (F&O), but also spelt new taxation rules for the Sovereign Gold Bonds, increasing the taxation burden for the investors who did not subscribe to the original issue.

According to the proposal announced in Budget 2026 by Finance Minister Nirmala Sitharaman, the capital gains tax exemption on SGBs will only be available to investors who subscribed to the original issue and held till maturity.

In her Budget speech, FM Sitharaman said that it is proposed to provide that the exemption from capital gains tax in respect of Sovereign Gold Bonds shall be available only where such bonds are subscribed to by an individual at the time of original issue and are held continuously until redemption on maturity.

It is also proposed to provide that this exemption applies uniformly to all issuances of Sovereign Gold Bonds by the Reserve Bank of India, FM said.

More to come…

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