Tax setback for gold bonds

IN A MOVE that would take away tax benefits for investors buying sovereign gold bonds (SGBs) from the secondary market, the Budget proposed that the capital gains exemption on these bonds will be only be made available to investors in the primary subscription and if held till maturity.

- RAJESH BHAYANI

This means all the bonds purchased from the secondary market will not get capital gains tax exemption even if held till maturity. This new clarification will be applicable retrospectively.