New Delhi, Feb. 4 -- The Budget for 2026-27 has removed the tax-free redemption benefit on sovereign gold bonds (SGBs) for secondary market buyers. Starting 1 April 2026, only those investors who bought SGBs at the time of issue and held them till maturity will get tax-free gains, excluding investors who purchased the bonds on stock exchanges even if they hold them till maturity.

The Budget has also quietly withdrawn another important exemption that impacts primary buyers as well. Tax laws currently allow capital gains tax exemption on SGBs redeemed prematurely through the Reserve Bank of India (RBI) after the five-year lock-in ends. This benefit has now been removed.

"Now, tax exemption is not available to anyone upon premature redempt...