How to save taxes on SGB redemption, even before the 8-Year tenor?

An SGB is tax-free if you hold it for 8 years. (Complete Tenor)

However, if redemption takes place on a coupon date in either the 5th/6th/7th year, and is sold back to the issuer (RBI), then, in that case, you are not liable for a tax.

If however, you sell it to anyone else in the market, then you are liable for a capital gains tax.

Cheers!

#SGB #Goldinvestments #Taxplanning #taxation

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