No short term, only if redeemed at maturity i.e. after 8 years, by any INDIVIDUAL, capital gain is exempted. Yes, premature encashment after 5 years is allowed.
@ Dhirajlal sir, after lock in period of 5 yrs one can make application to pre mature on intreast payment date befor maturity and that is taxable as capital gains ( LTCG)
SGB on redemption on coupon payment dates after five years are exempt from LTCG.But the sad part is that if one holds it in demat form one cannot opt for redemption before maturity as brokers don't have this option on the trading platform! RBI and SEBI toss the issue between them each saying that the other has to ensure compliance to notification! Jai Ho! Let's be practical and not theoretical !
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