Sovereign Gold Bond Tax Rules Changed: What Nirmala Sitharaman Announced in Budget 2026

• Finance Minister Nirmala Sitharaman announced significant changes to Sovereign Gold Bond (SGB) tax rules in Budget 2026, effective April 1, 2026.
• Long-term capital gains (LTCG) on SGBs will now be tax-exempt only if purchased directly from RBI issues.
• SGBs bought via stock exchanges will be subject to LTCG tax upon maturity, a major shift from previous rules.
• Previously, all SGB maturity amounts were exempt from LTCG tax, making them an attractive alternative to physical gold.
• Investors who purchased SGBs from stock exchanges will now see reduced returns due to the new 12.5% LTCG tax.

Why It Matters: New SGB tax rules effective April 2026 will tax capital gains on bonds bought via stock exchanges.