Why smart investors buy RBI Sovereign Gold Bonds instead of physical bullion: zero making charges, 2.5% annual cash interest, and complete capital gains tax exemption at maturity.
The Zero Capital Gains Tax Advantage
Under Section 47 of the Income Tax Act, capital gains arising from the redemption of Sovereign Gold Bonds by an individual at the end of the 8-year maturity tenure are completely exempt from income tax, saving up to 20% compared to physical gold or ETF sales.