Looking for a safe and profitable investment option? Consider tax-free bonds for tax-free income.
Tax-free bonds are issued by government-owned companies, and the interest earned on them is exempt from income tax.
Individuals, Hindu Undivided Families (HUFs), trusts, and charitable institutions are eligible to invest in tax-free bonds
Investors buy tax-free bonds at face value, and the interest is paid annually or semi-annually. The bonds have a fixed maturity period, and the principal amount is repaid at maturity.
The rate of interest on tax-free bonds is decided by the issuing company, and it varies from time to time
Tax-free bonds are considered safe as they are issued by government-owned companies, which have a high credit rating
Tax-free bonds are usually listed on the stock exchange and can be bought and sold like any other security
Yes, tax-free bonds can be held in a demat account.