What is the tax benefit of SGB?

Sovereign Gold Bonds are exempt from capital gains tax if held until maturity (8 years). The annual interest (2.5%) is, however, taxable.

SGBs offer an additional 2.5% annual interest and tax-free maturity, which Gold ETFs do not. However, ETFs are more liquid and can be sold easily on the stock exchange.

Sovereign Gold Bond

Compare SGB vs Physical Gold vs Gold ETF returns with latest tax rules.

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Quick Summary: Sovereign Gold Bond

A Sovereign Gold Bond (SGB) Calculator estimates returns from government-backed gold bonds in FY 2026-27, including 2.50% semi-annual coupon payments and potential tax-free capital appreciation.

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Regulatory Disclaimer

Last verified May 2026

Statutory Disclosure

Nature:Calculator platform and is NOT a SEBI-registered Investment Adviser. All calculations are indicative.

Risk:"Investments in securities market are subject to market risks. Read all related documents carefully before investing."

Consult a SEBI-registered IA or CA for personalised advice.

9 out of 10 traders in F&O incurred net losses (SEBI 2023). Tax estimates based on IT Act 2025. Trezoriq is not liable for financial decisions based on results.