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Anil

Anil Rego  | Answer  |Ask -

Financial Planner - Answered on Apr 06, 2022

Anil Rego is the founder of Right Horizons, a financial and wealth management firm. He has 20 years of experience in the field of personal finance.
He’s an expert in income tax and wealth management.
He has completed his CFA/MBA from the ICFAI Business School.... more
Prem Question by Prem on Apr 06, 2022Hindi
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Is it advisable to put some funds in Sovereign Gold Bonds or you would recommend sustained investment through online buying/selling of gold whenever rates are favourable? In spite of 2.5% interest applicable on the Sovereign Bonds, I guess funds getting blocked for eight years weigh against this option. What are the tax implications of investment in Sovereign Gold Bonds?

Ans:  

  • Sovereign Gold Bond scheme are an option to diversify your portfolio. However, on account of your age, you need to evaluate whether it is suitable to you, due to long tenure of the bond/low liquidity on the exchange.
  • Interest income is taxable as per your tax slab. On redemption, the capital gains tax applicable to an individual is exempted. Also, one can avail of indexation in case of long-term capital gains.
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Sanjeev

Sanjeev Govila  | Answer  |Ask -

Financial Planner - Answered on Sep 20, 2023

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@Anil Rego ji Namaskar - Intend to invest in gold bond, how should i proceed and which way is better to invest in gold bond ! i intend to invest in paper gold bond rather then purchasing gold physically. plz advise.
Ans: Gold can be a valuable addition to your portfolio. It has always been considered an asset that can hedge against inflation and other economic uncertainties. There are three popular ways to invest in gold.

Gold ETFs (Exchange-Traded Funds): Gold ETFs offer easy liquidity, as they are traded on stock exchanges just like stocks. They provide a direct exposure to the price of gold.
Taxation - Profits on the sale/redemption of Gold ETFs or units of gold saving funds bought after 31st March 2013 will be taxed as short capital gains irrespective of the holding period. So, this will be taxed as per an individual’s current tax slab.

Gold Mutual Funds: Gold mutual funds pool investments from multiple investors and provide professional fund management. They are an excellent choice for those who prefer a diversified approach.
Expense ratios and load fees can vary.
It is advisable to keep the investment in gold within 5% to 10% of one’s total investment portfolio.
Taxability is similar to that of Gold ETFs.

Sovereign Gold Bonds (SGBs): SGBs are issued by the Government of India and they provide an additional annual interest income. SGBs are suited for long-term investors who are looking for a safe haven asset and are willing to hold on to their investment for at least 5 years, preferably full 8 years to get the tax advantage of Zero capital gains tax on gains made.
The returns on SGBs are not guaranteed, and they depend on the prevailing market price of gold at the time of sale. There is a lock-in period of 5 years, so you cannot exit your investment before then.

SGBs may be the right choice. If liquidity and trading flexibility are important, consider Gold ETFs. Gold mutual funds are suitable for diversification, doing SIPs and professional management.

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Abhishek

Abhishek Dev  | Answer  |Ask -

Financial Planner - Answered on Sep 13, 2023

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Moneywize   | Answer  |Ask -

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The government of India have come up with a new batch of sovereign gold bonds and I see a lot of conversations about it on social and mainstream media. What are sovereign gold bonds? How can I invest in this instrument? Does it allow me any tax benefit? Please clarify.
Ans: Sovereign Gold Bonds (SGBs) are financial instruments issued by the Reserve Bank of India (RBI) on behalf of the Government of India. These bonds allow individuals to invest in gold without physically owning it. Instead of purchasing physical gold, investors buy these bonds issued by the government, which are linked to the market price of gold.

Here's how you can invest in Sovereign Gold Bonds:

1. Purchase During The Issuance Period: SGBs are issued periodically by the RBI, and investors can subscribe to them during specific issuance periods announced by the government. These periods are usually communicated through banks, designated post offices, stock exchanges, and other authorised agencies.

2. Application Process: You can apply for SGBs through eligible intermediaries like commercial banks, Stock Holding Corporation of India Ltd. (SHCIL), designated post offices, and recognised stock exchanges. The application process involves providing KYC (Know Your Customer) details and the required investment amount.

3. Allotment: Once you apply during the issuance period and fulfill the necessary criteria, the government allots the bonds based on the subscription.

Regarding tax benefits:

a. Capital Gains Tax Exemption: The main tax benefit of SGBs is that they qualify for long-term capital gains tax exemption if held until maturity (eight years). When you redeem or sell the bonds after this duration, the capital gains are exempt from tax.

b. Interest Income and Indexation Benefits: SGBs also offer an annual interest rate (fixed at the time of issuance) paid semi-annually. This interest income is taxable as per the income tax slab you fall under. However, the indexed cost of acquisition is allowed to be deducted from the capital gains arising on redemption, if any.

c. No Wealth Tax: Holding SGBs doesn’t attract wealth tax, which is an added advantage compared to physical gold holdings.

One must invest in SGBs, or, in any other asset class, only after consulting a financial advisor or tax consultant. This helps you get personalised advice regarding investments and tax implications depending on your family and wealth profile.

The attractiveness of SGBs depends on various factors, including prevailing interest rates, market conditions, and individual financial goals.

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Ramalingam

Ramalingam Kalirajan  |10881 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Oct 24, 2024

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Dear Money Gurus, I have invested in Sovereign Gold Bonds. I know if the bonds are held for full 8 years the redemption is tax free. However, I want to check if I opt to redeem the bonds after 5 years as per the Government window available, will the gains be taxable?
Ans: You mentioned considering the option to redeem the bonds after 5 years. The government provides a redemption window starting from the fifth year. This is convenient if you need liquidity before the 8-year term ends.

The question is whether the capital gains from redeeming after 5 years will be taxable.

In short, yes, the gains will be taxable if you redeem before the 8-year period.

Let me explain in detail.

Tax Implications on Redemption Before 8 Years
SGBs enjoy a unique tax benefit when held for the full tenure of 8 years. Any capital gains from redeeming the bonds after 8 years are completely tax-free. However, if you opt to redeem the bonds after 5 years using the available exit window, the capital gains will not enjoy the tax-free benefit.

If you redeem after 5 years but before 8 years, the capital gains will be taxed as long-term capital gains (LTCG).

LTCG on SGBs is taxed at 12.5% if the gains exceed Rs. 1.25 lakh in a financial year.
Short-term gains (STCG) are taxed at 20% if redeemed within three years.
By redeeming after 5 years, the government treats it as an early exit, and the LTCG taxation applies.

Interest Income: Taxable Every Year
It’s also essential to note that the interest earned on SGBs, which is currently set at 2.5% per annum, is taxable every year. This interest is added to your income and taxed as per your income tax slab.

You cannot avoid taxation on the interest income. So, even though you are considering redeeming after 5 years, your interest income has already been taxed annually.

Should You Redeem After 5 Years?
While the option to redeem after 5 years offers flexibility, it's important to weigh the tax implications. Redeeming after 5 years will attract LTCG tax, which reduces your net gains.

If your financial needs permit, holding the bonds for the full 8-year tenure will maximize the tax benefits, allowing you to redeem them tax-free.

This strategy makes SGBs more effective as a long-term investment.

Final Insights
If you redeem after 5 years, you will pay LTCG tax at 12.5% on gains exceeding Rs. 1.25 lakh.

The interest you earn each year is taxable and added to your total income.

Holding the bonds for the full 8 years will help you avoid capital gains tax, as the redemption is tax-free at that point.

Opt for early redemption only if you need liquidity or other financial circumstances require it. Otherwise, holding the bonds for the entire tenure offers better tax efficiency.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

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Nayagam P

Nayagam P P  |10854 Answers  |Ask -

Career Counsellor - Answered on Dec 14, 2025

Asked by Anonymous - Dec 12, 2025Hindi
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Hello, I am currently in Class 12 and preparing for JEE. I have not yet completed even 50% of the syllabus properly, but I aim to score around '110' marks. Could you suggest an effective strategy to achieve this? I know the target is relatively low, but I have category reservation, so it should be sufficient.
Ans: With category reservation (SC/ST/OBC), a score of 110 marks is absolutely achievable and realistic. Based on 2025 data, SC candidates qualified with approximately 60-65 percentile, and ST candidates with 45-55 percentile. Your target requires scoring just 37-40% marks, which is significantly lower than general category standards. This gives you a genuine advantage. Immediate Action Plan (December 2025 - January 2026): 4-5 Weeks. Week 1-2: High-Weightage Chapter Focus. Stop trying to complete the entire syllabus. Instead, focus exclusively on high-scoring chapters that carry maximum weightage: Physics (Modern Physics, Current Electricity, Work-Power-Energy, Rotation, Magnetism), Chemistry (Chemical Bonding, Thermodynamics, Coordination Compounds, Electrochemistry), and Maths (Integration, Differentiation, Vectors, 3D Geometry, Probability). These chapters alone can yield 80-100+ marks if practiced properly. Ignore topics you haven't studied yet. Week 2-3: Previous Year Questions (PYQs). Solve JEE Main PYQs from the last 10 years (2015-2025) for chapters you're studying. PYQs reveal question patterns and difficulty levels. Focus on understanding why answers are correct, not memorizing solutions. Week 3-4: Mock Tests & Error Analysis. Take 2-3 full-length mock tests weekly under timed conditions. This is crucial because mock tests build exam confidence, reveal time management weaknesses, and error analysis prevents repeated mistakes. Maintain an error notebook documenting every mistake—this becomes your revision guide. Week 4-5: Revision & Formula Consolidation. Create concise formula sheets for each subject. Spend 30 minutes daily reviewing formulas and key concepts. Avoid learning new topics entirely at this stage. Study Schedule (Daily): 7-8 Hours. Morning (5:00-7:30 AM): Physics concepts + 30 PYQs. Break (7:30-8:30 AM): Breakfast & rest. Mid-morning (8:30-11:00): Chemistry concepts + 20 PYQs. Lunch (11:00-1:00 PM): Full break. Afternoon (1:00-3:30 PM): Maths concepts + 30 PYQs. Evening (3:30-5:00 PM): Mock test or error review. Night (7:00-9:00 PM): Formula revision & weak area focus. Strategic Approach for 110 Marks: Attempt only confident questions and avoid negative marking by skipping difficult questions. Do easy questions first—in the exam, attempt all basic-level questions before attempting medium or hard ones. Focus on quality over quantity as 30 well-practiced questions beat 100 random questions. Master NCERT concepts as most JEE questions test NCERT concepts applied smartly. April 2026 Session Advantage. If January doesn't deliver desired results, April gives you a second chance with 3+ months to prepare. Use January as a practice attempt to identify weak areas, then focus intensively on those in February-March. Realistic Timeline: January 2026 target is 95-110 marks (achievable with focused 50% syllabus), while April 2026 target is 120-130 marks (with complete syllabus + experience). Your reservation benefit means you need only approximately 90-105 marks to qualify and secure admission to quality engineering colleges. Stop comparing yourself to general category cutoffs. Most Importantly: Consistency beats perfection. Study 6 focused hours daily rather than 12 distracted hours. Your 110-mark target is realistic—execute this plan with discipline. All the BEST for Your JEE 2026!

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Dear Sir/Madam, I am currently a 1st year UG student studying engineering in Sairam Engineering College, But there the lack of exposure and strict academics feels so rigid and I don't like it that. It's like they don't gaf about skills but just wants us to memorize things and score a good CGPA, the only skill they want is you to memorize things and pass, there's even special class for students who don't perform well in academics and it is compulsory for them to attend or else the student and his/her parents needs to face authorities who lashes out. My question is when did engineering became something that requires good academics instead of actual learning and skill set. In sairam they provides us a coding platform in which we need to gain the required points for each semester which is ridiculous cuz most of the students here just look at the solution to code instead of actual debugging. I am passionate about engineering so I want to learn and experiment things instead of just memorizing, so I actually consider dropping out and I want to give jee a try and maybe viteee , srmjeee But i heard some people say SRM may provide exposure but not that good in placements. I may not be excellent at studies but my marks are decent. So gimme some insights about SRM and recommend me other colleges/universities which are good at exposure
Ans: First — your frustration is valid

What you are experiencing at Sairam is not engineering, it is rote-based credential production.

“When did engineering become memorizing instead of learning?”

Sadly, this shift happened decades ago in most Tier-3 private colleges in India.

About “coding platforms & points” – your observation is sharp

You are absolutely right:

Mandatory coding points → students copy solutions

Copying ≠ learning

Debugging & thinking are missing

This is pseudo-skill education — it looks modern but produces shallow engineers.

The fact that you noticed this in 1st year already puts you ahead of 80% students.

Should you DROP OUT and prepare for JEE / VITEEE / SRMJEEE?

Although VIT/SRM is better than Sairam Engineering College, but you may face the same problem. You will not face this type of problem only in some top IITs, but getting seat in those IITs will be difficult.
Instead of dropping immediately, consider:

???? Strategy:

Stay enrolled (degree security)

Reduce emotional investment in college rules

Use:

GitHub

Open-source projects

Hackathons

Internships (remote)

Hardware / software self-projects

This way:

College = formality

Learning = self-driven

Risk = minimal

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.
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