SGB Tax Rules: New Gold Bond Tax Changes from April 1, 2026; What Investors Need to Know

• New tax rules for Sovereign Gold Bonds (SGBs) come into effect from April 1, 2026, impacting tax-free benefits at maturity.
• Only SGBs purchased directly from RBI (Primary Issue) and held until maturity will retain tax exemption on capital gains.
• SGBs bought from the secondary market, even if held until maturity, will be subject to capital gains tax on profits.
• The change aims to prevent investors from exploiting a loophole by buying SGBs at a premium in the secondary market for tax-free benefits.
• Secondary market investors face potential losses due to falling bond prices and new tax liabilities; annual 2.5% interest and pre-maturity sale tax rules remain unchanged.

Why It Matters: New SGB tax rules from April 1, 2026, limit tax-free maturity benefits to original RBI purchasers.