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:

Type	Period of Holding	Capital Gains
Listed or Traded Bonds	Up to 1 Year	Short-Term
Listed or Traded Bonds	After 1 Year	Long-Term – 10% without indexation
Sovereign Gold Bonds	Up to 3 years	Short-Term
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.