Under the current tax regime for SGBs, capital gains arising on redemption of SGBs issued by the Reserve Bank of India under the Sovereign Gold Bond Scheme were exempt from tax.
The Finance Bill, 2026 provides that such exemption shall only be allowed to original subscribers at the time of original issue which are held until maturity. This amendment applies uniformly to all RBI-issued SGBs from the 2015 scheme onwards. Proposed new tax regime clearly distinguishes between primary investor and secondary investor, thereby restricting secondary investor from obtaining benefit of exemption.
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