Scope of tax exemption for gold bond gains

ITAT Ahmedabad's Favourable Ruling on Tax Rebate, a Bonanza for Taxpayers at the Opportune Time of ITR Filing

- JIGAR MUKESH PATEL

QUERY: I purchased Sovereign Gold Bonds (SGBs) from the secondary market in 2023. This SGB series, originally issued in 2017, is now maturing after its 8-year tenure in 2025. I understand that maturity proceeds of investment in SGB are free from tax. However, I am not sure whether I can also enjoy this tax exemption, since I was not the original subscriber of these Bonds. Can you please guide me in regard to my tax liability?

REPLY: Section 47(viic) of the Income-tax Act provides that any transfer of SGB by way of redemption, by a taxpayer being an individual, shall not be treated as a transfer. In view of the same, the capital gains arising on the maturity of SGB enjoy full exemption and do not attract any liability to tax.