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Looking to invest in bonds for the tax saving and additional income! Invest in Tax-free Bonds to save tax and diversify your portfolio.
Tax free bonds are usually the government securities wherein the interest is fully exempted from the Income Tax and shall not form part of the Total Income as per provisions under section 10 (15) (iv) (h) of I.T. Act, 1961. The explanation to the question what are tax free bonds can help you plan your tax and investment well.
In general, tax free bonds are considered a low-risk investment opportunity for investors. These bonds constitute a long-term maturity of 10 years or more. The money collected by the government from these bonds are usually invested in infrastructure and housing projects. Municipal bonds are one such examples of tax-free bonds where fixed interest rates are provided without any mere default.
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Paying tax on the income earned as interest on the long or short-term investment made is a big concern for many of the investors in India. The option to diversify your portfolio can help share risks and reward. The tax free government securities are also a good instrument for safe investing.
The tax free government securities tend to be the first choice of HNI customers coming in the category of high taxpayers.
Tax-free Bonds are a good choice for investors specifically for the senor citizens in need for fixed income. The default risk in Tax-free Bonds is minimal due to its longer tenure. The interest on tax free bonds is also a major attraction for investors.
Tax-free Bonds in India can prove to be a good instrument for investments. As the name suggest, it is free from the tax liability on the interest income earned.
The income earned from the investment made in Tax-free Bonds are exempt from tax under the Income Tax Act, 1961, Also, no TDS applies on it.
Tax-free Bonds comes with the tenure ranging from 10, 15, or 20 years. The longer tenure facilitates the interest income for a longer period useful for senior citizens in particular.
The rate of interest offered to investors holding tax-free bonds generally ranges from 5.50 to 6.50% which is comparatively good considering the tax benefit. You can know the tax free bonds yield to plan your varied goals in your life
The income earned from the investment made in Tax-free Bonds are exempt from tax under the Income Tax Act, 1961, Also, no TDS applies on it.
Tax-free Bonds comes with the tenure ranging from 10, 15, or 20 years. The longer tenure facilitates the interest income for a longer period useful for senior citizens in particular.
The rate of interest offered to investors holding tax-free bonds generally ranges from 5.50 to 6.50% which is comparatively good considering the tax benefit. You can know the tax free bonds yield to plan your varied goals in your life
With longer tenure, low-default risk and getting fixed income for an extended period makes an excellent choice for investors like senior citizens to invest in such bonds.
Those investors who come in the rage of the highest tax-bracket can invest in such tax-free bonds.
High net-worth (HNI) individuals, trusts, HUF members, co-operative banks, and qualified institutional investors are also eligible to invest in tax-free bonds.
Tax free bonds are a very good option and choice for investors looking to save tax. You can learn about the tax implications applicable to tax-free bonds and accordingly plan your investments in tax free bonds.
Investing today is a simple and easy task in the country. There are many online platforms like BondsIndia that help you park your surplus money in no time. Today Tax free investments in India can be done in a couple of minutes. You are required to create your online account, complete your KYC, and get set for your investment journey.
Investment in tax-free bonds can help you take the advantage of risk-reward. Tax-free bonds have a long-time maturity and hence is suitable for investors willing to park their money for long time. The maturity in case of tax-free bonds is generally 10 year or longer. It has minimal default risk. The return in comparison to corporate bonds is low in tax free bonds in India.
BondsIndia is a professional and user-friendly online platform designed especially for the fast navigation. You can have access to different products, Knowledge Centre, Research reports, and more helping you make informed decision.
If you are looking to explore bonds online at BondsIndia,
The benefit of tax exemption, longer tenure, good interest rate, and more makes Tax-free bonds a good investment tool for different type of investors.
Yes, individual investors including senior citizens can invest in tax-free bonds.
Yes, capital protection and a source of fixed income makes tax-free bonds a safe investment instrument.
Yes, under the Income Tax Act, 1961, the income earned from Tax-free bonds are non-taxable.
Only the local and state governments (i.e., municipal bonds) issued bonds are non-taxable.
Investing in tax-free bonds in India is an ideal choice for the investors looking to save tax payment.
Yes, you can book a 5-minute call with our experts at BondsIndia for an advice on investment in bonds.
BondsIndia is a professional and hundred percent dependable online platform to trade in bonds.
For the information on the best tax-free bonds in India, consult our investment experts at BondsIndia.
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