BUDGET
Gold bonds tax-free if bought at issuance, held till maturity
This story was originally published at 16:54 IST on 1 February 2026
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NEW DELHI – The government has proposed to provide capital gains tax exemption on sovereign gold bonds only when individuals subscribe to them at the time of original issue and these are held until redemption on maturity, according to the Union Budget for 2026-27 (Apr-Mar) presented by Finance Minister Nirmala Sitharaman in the Lok Sabha Sunday.
"It is also proposed to provide that this exemption applies uniformly to all issuances of sovereign gold bonds by the Reserve Bank of India," Sitharaman said.
The government, through RBI, last issued sovereign gold bonds in February 2024. The gold bonds scheme was introuced in 2015 to curb heavy imports of the precious metal. Investors in the bonds are paid 2.5% interest per annum. End
Reported by Vaishali Tyagi
Edited by Avishek Dutta
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