TAX ON SOVEREIGN GOLD BOND

Hi, 

I need clarification of capital gain on Soverign Gold Bonds issued by RBI on behalf of Government of India. When SGB was issued in 2016, it was indicated that If you hold the SGB until maturity (8 years), any capital gains arising on redemption are exempt from capital gains tax. 

However, when SGB was redeemed upon maturity, one of the retail stock brokers, had shown the difference between the initial purchase value and the redemption value as Long Term Capital Gain.

Is the retail stock broker right in showing the gain under LTCG for tax purpose

Yours sincerely

K.SundaraRajan