New Delhi, Feb. 1 -- To streamline the tax benefits of the Sovereign Gold Bond or SGBs, budget 2026 has proposed an amendment that restricts capital gains tax exemptions only to original subscribers. This change effectively ends the tax-free status for secondary buyers or those who purchase SGBs from the stock exchange or from other investors after the initial allotment.

Starting 1 April 2026, the exemption from capital gains at the time of redemption will be available only to investors who buy SGBs directly during the primary issuance and hold them continuously until maturity. "A primary buyer is someone who subscribes to the bond during the original RBI window via banks, post offices, or online platforms. A secondary buyer picks up the...