Tax-Free Bonds are long-term, fixed-income securities issued by government-owned organizations to raise funds for infrastructure and public projects. The interest earned on these bonds is completely exempt from taxes under Section 10(15)(iv)(h) of the Income Tax Act, making them highly attractive for investors in higher tax brackets.
\\r\\n\\r\\nTypes of Tax-Free Bonds
\\r\\n\\r\\n- \\r\\n
- Public Sector Tax-Free Bonds:Issued by government-owned companies like NHAI, REC, PFC, and IRFC. \\r\\n
- Listed & Tradable Bonds :Available for trading on stock exchanges. \\r\\n
- Non-Listed Bonds :Held until maturity without trading options. \\r\\n
Key Features of Tax-Free Bonds
\\r\\n\\r\\n- \\r\\n
- Tax-Free Interest Income :Interest earned is fully exempt from income tax, helping investors maximize returns. \\r\\n
- Low-Risk Investment :Backed by government entities, these bonds provide high security. \\r\\n
- Fixed & Assured Returns :Investors receive regular, predictable interest payouts throughout the bond tenure. \\r\\n
- Long-Term Tenure :Typically issued for 10 to 20 years, making them ideal for long-term wealth preservation. \\r\\n
- Liquidity & Tradability :Listed tax-free bonds can be traded on stock exchanges, offering flexibility to investors. \\r\\n
- No TDS Deduction :Unlike other fixed-income instruments, tax-free bond interest is not subject to Tax Deducted at Source (TDS). \\r\\n
Secure your financial future with tax-efficient, low-risk investments. Our experts will guide you in selecting the best tax-free bonds to match your financial goals. Start investing today!