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Tax Implications of Buying Sovereign Gold Bonds

Three reasons that make Sovereign Gold Bonds a popular instrument are - the fixed annual interest, capital gains, and the tax exemptions after maturity. In this article, we will look at SGBs and their tax implications.
April 18, 2024
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A good investment portfolio needs a balance of high-risk and low-risk investment instruments. Since gold is a non-market linked asset, it can help hedge against inflation.   


Traditionally, physical gold has been a popular form of investment among Indians. However, a lot of investors have now turned to digital gold investments like Sovereign Gold Bonds, ETFs, and digital gold.


This blog will answer common queries around SGB returns and tax implications. But before we get to tax implications, let’s understand Sovereign Gold Bonds and how they work. 


Important: This blog is meant to educate readers and the information furnished here is not to be construed as investment advice from Cube Wealth. You can consult a Cube Wealth coach or download a Cube Wealth app. 


What Are Sovereign Gold Bonds?


Sovereign gold bonds are government securities issued in grams of gold. Sovereign Gold Bonds were made available to Indian investors in November 2015.   


SGBs are paper gold investments so you do not have to worry about storage

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