Sovereign Gold Bonds: what actually changed
Short version: you can't buy new SGBs anymore, and if you already own some, a 2026 tax rule change may affect you depending on how you bought them.
1. New issuance stopped in February 2024
The last fresh tranche was SGB 2023-24 Series IV, issued in February 2024. No issuance calendar has been announced for FY 2026-27, and the scheme is widely understood to be paused indefinitely — the government found it an expensive way to borrow once gold prices rose sharply, since it owed both the 2.5% annual interest and the full gold-price gain at redemption, tax-free to the original investor.
If you're looking to invest fresh money in gold today, SGBs are not an option — see the comparison table for what is.
2. Existing bonds are still valid and still pay interest
If you already hold SGBs, nothing about your holding disappeared. Your bonds continue to:
| Interest | 2.5% per annum, paid semi-annually, taxable at your income slab |
| Term | 8 years from issue, with an exit window after 5 years on interest payment dates |
| Price tracking | Tracks the market price of gold, same as before |
| Secondary market | Tradeable on NSE/BSE if you want to exit before 5 years |
3. The Budget 2026 tax change — the part most sites miss
Before April 2026, the capital gain on SGBs was tax-free at maturity for anyone redeeming them, including people who'd bought the bonds second-hand on the stock exchange rather than subscribing originally.
From 1 April 2026, that exemption narrowed. The maturity capital-gains exemption now applies only to original RBI subscribers who hold to maturity. If you bought your SGBs on the secondary market (NSE/BSE) rather than at original issue, your gains at maturity are now taxable.
| Scenario | Before Budget 2026 | From 1 April 2026 |
|---|---|---|
| Original subscriber, held to maturity | Tax-free | Still tax-free |
| Bought on secondary market, held to maturity | Tax-free | Now taxable |
| Sold before maturity (any buyer) | Taxable | Taxable |
This closes an arbitrage where investors bought discounted SGBs on the exchange near maturity purely to capture the tax-free gain — something the scheme wasn't designed to allow.
4. What to actually do if you hold SGBs
You're an original subscriber
Nothing changes for you. Hold to maturity as planned — your exemption stands.
You bought on the exchange
Your maturity gain is now taxable. Factor this into your return expectations; it no longer beats a Gold ETF on tax efficiency the way it used to.
You want fresh gold exposure
SGBs aren't available. Compare Gold ETFs and mutual funds on the homepage — they're now the closest low-cost, liquid alternative.