A comparison of cyclic voltammograms of dodecanethiol (DDT) capped Au nanoclusters (5.0 +/- 0.5 nm) and trisodium citrate (Cit) capped Au nanoclusters (similar to 10-15 nm) modified glassy carbon electrode shows a dramatic variation in the current when exposed to a small amount of sulphur dioxide. This is explained using the electrocatalytic properties of Au nanoclusters towards the oxidation of SO2, thus facilitating the fabrication of electrochemical sensors for the detection of SO2. The intrinsic redox changes observed for gold nanocluster-modified glassy carbon electrodes disappear on passing SO2, despite a dramatic current increase, which indeed scales up with the amount of dissolved SO2. Interestingly, a complete rejuvenation of the redox behavior of gold is also observed on subsequent removal of SO2 from the solution by passing pure nitrogen for 15 minutes. Further, these nanoclusters when characterized with X-ray photoelectron spectroscopy (XPS) and Fourier transform infrared spectroscopy (FTIR) after SO2 passage reveal a variety of SO2 adsorption modes on gold surface. XP spectra also show a shift of 1.03 eV towards higher binding energy indicating a strong adsorption of SO2 gas, while FTIR gives conclusive evidence for the interaction of SO2 with gold nanoparticles.