How are Capital Gains on Listed Bonds and Sovereign Gold Bonds computed?

Modified on Mon, 21 Aug 2023 at 04:15 PM

In this article, we'll walk you through the details of computing capital gains for Listed Bonds and Sovereign Gold Bonds

Capital Gains on Listed Bonds and Sovereign Gold Bonds when you sell them in the stock exchange:


Period of Holding

Capital Gains

Listed or Traded Bonds

Up to 1 Year


Listed or Traded Bonds

After 1 Year

Long-Term – 10% without indexation

Sovereign Gold Bonds

Up to 3 years


Sovereign Gold Bonds

After 3 Years

Long-Term – 20% with indexation

However, redeeming your Sovereign Gold Bonds after they've matured comes with a tax advantage. The proceeds from these matured bonds are exempt from taxation. This means that when you redeem your bonds on maturity, the entire amount is yours without any tax deductions.

MProfit simplifies the process of calculating capital gains. Once you import all your traded bond transactions into MProfit, the software automatically identifies the traded bonds or Sovereign Gold Bonds and computes the capital gains according to the prevailing Income Tax rules.

With MProfit, you can effortlessly track and manage your investments, ensuring accurate and hassle-free tax compliance.

Was this article helpful?

That’s Great!

Thank you for your feedback

Sorry! We couldn't be helpful

Thank you for your feedback

Let us know how can we improve this article!

Select atleast one of the reasons

Feedback sent

We appreciate your effort and will try to fix the article