What is SGB and its advantages

please let me know the advantages and disadvantages of SGB
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Quick Summary
Sovereign Gold Bonds (SGBs) are government-issued investments offering a safe way to invest in gold. They provide an annual interest of 2.5% and offer capital gains tax exemption if held for the full 8-year maturity. While interest is taxable, SGBs also provide liquidity as they are listed on stock exchanges, allowing for potential withdrawal after 5 years with indexation benefits.

It is abbreviated form of Soverign Gold Bonds

SGB issued by government yearly from Oct to march at value determined from time to time.

It will give int 2.5%.

Safe investment of gold.

Same returns as compared to physical gold.

Exemption from capital gain tax if held till maturity of 8 years.

You can with draw it after 5 years than capital gain is applicable with indexation benifit for individual.

Intrest is taxable as per slab rates.

 

 

Plus any time liquidity as SGB are listed on stock exchanges NSE BSE

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