Gold Bond Rules Tightened: Why ETFs May Now Suit Investors, Explains ICICI Pru AMC's Haria

• Union Budget 2026 adjusted tax treatment of Sovereign Gold Bonds (SGBs), causing volatility and reassessment for investors.
• From April 1, 2026, capital gains tax exemption on SGBs redeemed at maturity applies only to primary issuance subscribers holding until maturity.
• Secondary market SGB buyers will no longer receive tax-free redemption; gains will be taxed at slab rate or 12.5% (without indexation).
• Chintan Haria of ICICI Prudential AMC explains the change removes unintended tax arbitrage and reorients incentives to primary issuances.
• Haria suggests Gold ETFs and FoFs offer higher liquidity, easier entry/exit, professional vaulting, and simpler tax reporting, potentially outweighing expense ratios for many investors.