Sovereign Gold Bond Investors Hit: New Tax Rules Spark Outrage

• Budget 2026 introduces significant tax changes for Sovereign Gold Bonds (SGBs), impacting investors who bought from the secondary market.
• Previously tax-exempt on maturity if held for 8 years, SGBs bought from secondary markets will now face Capital Gains Tax.
• Long Term Capital Gain Tax of 12.5% (without indexation) applies if held over 12 months; Short Term Capital Gain Tax applies if sold earlier.
• The government's move aims to reduce gold imports and manage fiscal deficit, but investors feel betrayed by the rule change.
• Investors express anger, calling it a "breach of trust" and a blow to small investors, leading to a drop in SGB prices.