Taxation of sovereign gold bonds

Sovereign gold bonds (SGBs) provide an assured annual return of 2.5 per cent in the form of interest. This is paid semi-annually to the bondholder and credited directly into their bank account. For taxation purposes, the interest is added to the taxable income every year and taxed as per the slab in which the bondholder falls. The price of an SGB is linked to the price of gold of 999 purity as published by the India Bullion and Jewellers Association. It

This article was originally published on May 10, 2022.