Query regarding tax exemption on gifted Sovereign Gold Bond (SGB)
My father purchased a Sovereign Gold Bond from RBI during FY 2020-21. The bond series is SGBMR29XII-GB.
Recently, he gifted this SGB to his daughter (age 18+) by transferring it to her demat account.
I understand that the government has different capital gains tax rules for SGBs purchased from the secondary market. However, in this case, the bond was originally purchased from RBI by my father and later transferred to his daughter as a gift.
My question is:
If the daughter continues to hold the gifted SGB until its maturity in 2029 and receives redemption proceeds from RBI, will the redemption gain be exempt from capital gains tax?
Since the bond was originally purchased from RBI but later transferred through a gift, will the tax exemption available on SGB redemption still apply to the daughter?
Please clarify the tax treatment in this situation.
Thank you
Vikas