What are the applicable taxes for Government securities (G-secs)?

The tax rates for government securities (G-secs) are as follows:

• Sovereign Gold Bonds (SGBs): If held until maturity, i.e., 8 years or redeemed prematurely after 5 years, there is no capital gains tax. If sold in the secondary market after a holding period of more than 12 months, the Long Term Capital Gains (LTCG) tax is applicable at 12.5%. If sold within 12 months, taxes are applicable as per the tax slab rates. Additionally, interest on SGBs is taxed as per the slab rates.
• Bonds and SDL: Interest credited to the bank account is considered income from other sources, and taxes have to be paid according to the income tax slab. Appreciation in bond prices is considered capital gains, and LTCG is 12.5% flat. Short Term Capital Gains (STCG) are as per the applicable slab rate. There is no Tax-deducted-at-source (TDS) for the interest payments received for G-secs.
  
• T-bills: T-bills are bought at a discount and sold at par. The appreciation is considered as STCG and taxed as per the applicable slab rate.