Sovereign Gold Bond (SGB) tax exemption after Budget 2026

Income Tax Act 2025 Income from Capital Gains
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Hi @Anush_Seetharaman,

Let me address your questions one by one

  1. SGBs and Gold ETFs – holding period and long‑term status
  • If your SGBs and Gold ETFs are held for more than 24 months, the gains will be treated as long‑term capital gains (LTCG).
  • If they are held for more than 1 year but less than 24 months, they will still be treated as short‑term capital gains (STCG).
  1. GoldBees – short‑term vs long‑term
    GoldBees is a gold ETF and is taxed in the same manner as other gold ETFs (i.e., as a non‑equity fund).
  • If held for more than 12 months, the gain becomes long‑term and taxable at the applicable LTCG rate.

  1. Nifty BeES – mix of LTCG and STCL
    Nifty BeES is an equity‑oriented ETF. Units held more than 12 months give rise to LTCG, and units held 12 months or less give STCG/STCL.

  2. Set‑off of Nifty BeES loss against gains on SGB/Gold ETF/GoldBees
    Under the capital loss set‑off provisions, short‑term capital loss (STCL) can be set off against both STCG and LTCG in the same financial year.
    Therefore, if after selling Nifty BeES you have a net STCL, you can set it off against capital gains on SGBs, Gold ETFs and GoldBees.

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