Tax Implication of buying sovereign gold bond (SGB) from stock exchange

As per my view, Selling SGBs in the secondary market before maturity attracts tax on capital gains. If you redeem SGB units before a holding of 3 years, it qualifies as short-term capital gains. However, SGB unit redemption exceeding 3 years is referred to as long-term capital gains.

While short-term gains are taxed based on your tax slab, long-term gains are taxed at approximately 20%, coupled with indexation benefits. So, understanding these key factors on tax implications is crucial before purchasing SGBs from the secondary market.

Thanks but my question was regarding tax implications when I am buying soverign gold bonds (SGB) not selling.

In particular i am not buying during the bond issue rather I am buying from exchange.

In that case will I still qualify for tax exemption on redeeming on maturity.