rishabhsharma (Article Assistant) (140 Points)
20 September 2019Dear All,
Please help me to solve queries regarding Sovereign Gold Bonds.
1. are both 10% and 20% tax rates available on sale of Sovereign Gold Bonds before maturity?
2. Holding period for Sovereign Gold Bonds is 36 months?
3. is indexation benefit available on Sovereign Gold Bonds?
Thank You.
Kapadia Pravin
(17259 Points)
Replied 20 September 2019
Suresh Thiyagarajan
(Student)
(3986 Points)
Replied 20 September 2019
1. Long term capital gains @ 20% in case if the bond (SGB) is transferred after 3 years from the date of purchase.
2. Holding period of such SGB is 8 years and after 5 years bonds can be traded with the government.
3. Yes, Indexation benefits are available if the bonds are transferred within a maturity period.
Please correct me if the above solution has an alternative view.
CAclubindia
