SGBs vs. Physical Gold: Key Tax Changes & Why They're Still a Smart Buy

• Sovereign Gold Bonds (SGBs) are a popular alternative to physical gold, offering stable returns and government backing.
• New tax rules from April 1, 2026, clarify capital gains exemption: only SGBs bought directly from RBI/government and held until maturity are tax-free.
• SGBs purchased from the secondary market or redeemed prematurely will be subject to capital gains tax.
• The 2.5% annual interest on SGBs is always taxable as 'income from other sources'.
• The scheme, launched in 2015, aimed to reduce physical gold imports and encourage financial asset investment, largely achieving its goals.