Question: I bought Sovereign Gold Bonds in the secondary market. Under current Indian tax rules, do I still get the maturity exemption?
Answer: No. The exemption does not apply to Sovereign Gold Bonds acquired through transfer or purchase in the secondary market; it is restricted to original issue subscriptions held to maturity.

Supporting evidence:
title: incometaxindia.gov.in/daf54d14-aca9-c4ea-b786-598fd2f8d4c4
quote: No, the exemption shall not apply to Sovereign Gold Bonds acquired through transfer
or purchase in the secondary market exemption from capital gains tax shall be available only where the Sovereign Gold
Bond is subscribed to by an individual at the time of original issue and is held
continuously until redemption on maturity
context: formly to all Sovereign Gold Bonds issued by
**Ans:**
Yes. The amended provision applies uniformly to all Sovereign Gold Bonds issued by
the Reserve Bank of India from time to time, irrespective of the series in which the
bonds were issued, subject to fulfilment of the specified conditions.

Q.4 Will the exemption under section 70(1)(x) of the Income-tax Act, 2025 apply to Sovereign Gold Bonds acquired through secondary market transactions? Ans: No, the exemption shall not apply to Sovereign Gold Bonds acquired through transfer

**Ans:**
No, the exemption shall not apply to Sovereign Gold Bonds acquired through transfer
or purchase in the secondary market. The exemption is restricted to bonds subscribed
to by an individual at the time of original issue. This was also clarified by the
Department of Economic Affairs in its OM dated 06.12.2022.
**Q.5 Will this exemption be available in cases of premature redemption of Sovereign**
**Gold Bonds?**
**Ans:**
No, the exemption shall apply only where the Sovereign Gold Bond is held continuously
prescribed lock-in period, shall not be eligible for exemption.
**Ans:**
Taxability is as under:

Q.6 From which date shall the amended provisions apply? Ans: The amendment shall take effect from the 1st day of April, 2026 and shall apply in

a), Conditions = If purchased at the time of issue and held till maturity:. a), Taxability = Exempt
**Ans:**
The amendment shall take effect from the 1st day of April, 2026 and shall apply in
relation to the tax year 2026-27 and subsequent tax years.
c), If not purchased at the time of issue and held till maturity: = If purchased at the time of issue and but not held till maturity:. c), Taxable = Taxable. d), If not purchased at the time of issue and held till maturity: = If neither purchased at the time of issue and nor held till maturity:. d), Taxable = Taxable

Q.1 What is the current regime governing Provident Funds under the Income-tax Act? Ans: Currently, provident funds are governed by Schedule XI of the Income-tax Act, 2025

**Ans:**
Currently, provident funds are governed by Schedule XI of the Income-tax Act, 2025
under which they are recognized and are subject to certain restrictions, including
parity-based limits on employer contributions, percentage caps on excess
contributions, differentiated limits for employee-shareholders, and investment limits
in Government securities, among others. The other sections of the Income-tax Act,
2025 that are applicable to such provident fun