SGB Analyzer

Tax-Conscious Investors

SGB Tax Benefits: Maximize Tax Efficiency

Complete guide to SGB taxation and tax-free returns

**Important Update (Budget 2026):** Tax-free maturity is now only available to original subscribers who bought during RBI's primary issues. Secondary market buyers will pay 12.5% LTCG from April 2026.

For those who subscribed during primary issues, SGB remains one of the most tax-efficient gold investments. This guide explains the new taxation rules and strategies for maximum tax efficiency.

Common Challenges

High taxes eating into investment returns
Confusion about gold taxation rules
Want to minimize tax legally
Don't know how SGB compares tax-wise
Worried about TDS and compliance

How SGB Helps

Maturity gains are TAX-FREE (for original subscribers only)
No TDS on maturity redemption for original subscribers
2.5% annual interest (taxable at slab rate)
No wealth tax on SGBs
Can harvest losses if needed
Clear tax rules post-Budget 2026

Recommended SGBs for Tax-Conscious Investors

#	Symbol	Price	Discount	Yield	Maturity
1	SGBFEB32IV	₹17,812	-11.04%	-1.53%	Feb 2032

View interactive table with filters →

Investment Tips for Tax Saving

1If you're an original subscriber, hold until maturity for tax-free gains
2Secondary market buyers: tax treatment is now same as Gold ETF (12.5% LTCG)
3Early sale (before 12 months) = short-term gains at slab rate
4Interest is added to income and taxed at slab rate
5Plan maturity dates around your expected income levels
6Keep all purchase records for capital gains calculation

Important Warnings

From April 2026: Tax-free maturity ONLY for original subscribers
Secondary market buyers pay 12.5% LTCG even at maturity
Interest income is always taxable at slab rate
RBI has discontinued new SGB issues since Feb 2024
Consult CA for your specific tax situation

Calculate Your SGB Returns

Use our calculator to estimate your potential returns based on investment amount and holding period.

Frequently Asked Questions

From April 2026: Tax-free maturity is ONLY for original subscribers (those who bought during RBI primary issues). Secondary market buyers pay 12.5% LTCG. The 2.5% annual interest is always taxable at your slab rate.

For all holders: Less than 12 months = Short-term gains at slab rate. More than 12 months = 12.5% LTCG without indexation (post-Budget 2024 rules). Tax-free benefit only for original subscribers at maturity.

For original subscribers, yes - maturity is tax-free vs 12.5% LTCG for Gold ETF. For secondary market buyers post-April 2026, tax treatment is similar (12.5% LTCG). Original subscription is now more valuable.

Interest is added to your 'Income from Other Sources' and taxed at applicable slab rate. There's no TDS on interest, but you must report it in your ITR.

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