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Sovereign Gold Bonds (SGBs) have always attracted investors looking to participate in gold’s price movement without the challenges of buying and safeguarding physical gold. Backed by the Government of India and issued through the Reserve Bank of India (RBI), these bonds provide exposure to gold while also offering a fixed annual interest payment of 2.5 per cent. However, significant changes to the taxation framework of SGBs have come into effect from April 1, 2026, following announcements made in the Union Budget 2026. While the revised rules continue to offer benefits to certain investors, others may now face a tax liability upon redemption.