28 Jan 2026 | 3 Mins Read
HUFs face 12.5% LTCG tax on gold bonds
Flipitmoney
Investing in Sovereign Gold Bonds (SGB) 2020-21 in individual and HUF names. On early redemption after five years, individual investors won't pay capital gains tax. However, the HUF investment will incur 12.5% Long-term capital gains tax since the redemption is treated as a transfer for income tax purposes.