Unlocking the Sovereign Gold Bond's Tax Code

Sovereign Gold Bond Scheme: Introduced in 2015, it allows investors to buy gold bonds without physical ownership. Investment Vehicle: Denominated in grams, it's issued by the Reserve Bank of India with a fixed maturity of 8 years.

Tax on Capital Gains: Exempted upon maturity, but applicable if sold before 5 years at individual's slab rates.

Interest Taxation: Semi-annual interest at 2.5% taxed under Income from Other Sources (IFOS). Tax Treatment on Sale: For individuals, LTCG applicable if held over 12 months, taxed at 10% or 20%.

Different Tax Regime: Non-individual investors taxed at LTCG rate of 10% or 20%, with or without indexation. ITR Filing: ITR-1 for IFOS income, ITR-2 for capital gains income. Deadline: July 31st of Assessment Year.