Tax Free Bond

image

Tax Free Bonds

Tax free bonds have become highly popular investment option among investors due to the amazing taxation benefit that they offer. These bonds are generally issued by Government backed entities, are exempt from taxation on the interest income received from such instruments under the Income Tax Act, 1961. The Central Government, in exercise of its powers conferred under Section 10 (15) (iv) (h) of the Income Tax Act, 1961, has authorized to issue tax-free, secured, redeemable, non-convertible bonds.

Advantages of Tax Free Bonds
  • Low risk- The companies with good credit ratings offer tax free bonds.
  • Liquidity- Listing of bonds on exchange provides liquidity.
  • Tax-free income
  • Easy to handle- Option of holding bonds in 'Demat Form' makes your investments easy to handle & monitor.

We at Confi suggest our clients to invest in tax free bonds after properly evaluating the tax rate, tax liability and long-term needs.