Secure Returns, Zero Tax: Invest in Tax Free Bonds

Enjoy fixed income with no tax burden on interest. Backed by government institutions, tax-free bonds offer a safe, long-term wealth building solution.

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What Are Tax Free Bonds?

If you are looking for a haven to park your funds in, hereís good news for you: Invest in tax free bonds and earn interest on your funds every year. Thereís more good news; the interest earned on your bond is entirely tax-free. The security of tax free bonds in India is issued by a company, financial institution or the government. These bonds are, therefore a safe investment option. You can sell the bonds before maturity, too, on market price as they are listed on the Bombay and National Stock Exchanges.

Features of Tax-Free Bonds

Interest

The interest is earned annually and is fully exempt from taxation as determined by the Central Government.

Tenure

You can invest in tax-free bonds for up to 10, 15, or 20 years — ideal for long-term investors.

Liquidity

These bonds are tradable on the market. However, capital gains on sale may be taxed under the IT Act.

Form

You can hold these bonds in either physical or dematerialized format — purchase via demat or directly.

Benefits of Tax Free Government Bonds

Assured Income

The interest is guaranteed every year and is tax-free. Principal is returned on maturity. Only Indian nationals and HUFs can purchase.

Government Backed Safety

These bonds are issued by the Government of India, ensuring minimal default risk. Investors will get their capital back.

Easy Trade & No Limit

Tradeable on the stock market, offering liquidity and potential for capital gain. No upper investment limit makes it ideal for HNIs.