Sovereign gold bonds/ legal benefits of investing in SGB/ SGB investments/ Best law firm in Coimbatore/ Best advocates in Coimbatore/Best law service in Coimbatore/ Best legal consultation in Coimbatore/ Best legal services in Coimbatore/ Best lawyers in Coimbatore/ Online legal consultation. Investing in sovereign gold bonds (SGBs) issued by the Government of India may offer certain benefits from a legal perspective. Here are some potential legal benefits of investing in SGBs: SGBs are issued by the Government of India and are considered a safe investment option as they are backed by a sovereign guarantee. This means that the investor's investment is protected by the government, which adds an additional layer of security. SGBs are recognized as a legal investment instrument under the Government Securities Act, 2006, and are regulated by the Reserve Bank of India (RBI). This means that investing in SGBs is a legally recognized investment form in India. SGBs are exempt from wealth tax under the Wealth Tax Act, 1957. This means that SGBs held by an investor do not attract wealth tax liability, which can be a potential legal benefit. Interest earned on SGBs is taxable under the individual's income tax slab. Capital gains arising from SGB redemption at maturity or early exit are exempt from capital gains tax. Additionally, SGBs are eligible for an indexation benefit if sold after 3 years, which can provide tax advantages for investors. SGBs are issued in dematerialized form and held electronically, which eliminates the need for physical possession and storage of the gold. This can mitigate risks associated with physical gold ownership, such as theft, damage, or loss. You can get the law services like Trust deed, Financial law, Insurance law, Environment, Consumer, Property, Banking Tax Cyber, Constitutions, Labor law, Civil, Criminal, Family, Property registration, Getting NOC’s, and many others from our expert lawyers at Saanvika Legal Associates.