New Delhi, June 16 -- Sovereign gold bonds have been a popular investment option for those seeking exposure to gold without the hassles of storing physical bullion. Issued by the Reserve Bank of India (RBI) on behalf of the Government of India, these gold assets offer investors the dual benefit of potential capital appreciation linked to gold prices and a fixed interest income at 2.5% per annum.

The tax treatment of SGB redemption has undergone some major changes from April 1, 2026, in line with proposals announced in the Union Budget 2026, though it remains favorable for original subscribers.

SGBs are government securities denominated in grams of gold and issued as substitutes for holding physical gold. The bonds carry an eight-year te...