The Sovereign Gold Bond Scheme was introduced with the dual intention of providing security as well as fulfilling a social obligation.
It is proposed that redemption of a Sovereign Gold Bond under the said Scheme by an individual shall not be considered as a transfer and shall be exempt from capital gains tax.
It is proposed to provide that indexation benefits in case of long term capital gains arising on transfer of sovereign gold bonds (from one person to another) issued under the Scheme.
This amendment will take effect from 1st April, 2017 and will, accordingly, apply in relation to the assessment year 2017-18 and subsequent assessment years
