highlights
With tax-free bonds, you get higher returns and there are no taxes.
They are issued by the government and are therefore safe for investment.
Tax-free bonds are a very popular investment option among wealthy investors.
New Delhi. When an investor puts money anywhere, their first concern is to get the maximum return while paying as little tax as possible. However, there are plenty of options available to investors, including tax-free bonds. You can also earn tax-free income and attractive interest rates by investing in listed tax-free bonds.
Tax-free bonds are a very popular investment option among wealthy investors. They make more money with it than money. This can be a tax saving opportunity for those in the upper tax bracket. Let us know how you can invest in these bonds.
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Benefits of investing in tax-free bonds
Investing in tax-free bonds offers many benefits. If you fall into the 20 to 30 per cent tax bracket, you will have to pay around Rs 15,000 in tax if you earn Rs 50,000 in interest annually from your bank deposits. Because of this, your return is reduced to around 35,000 rupees. Conversely, if you invest that money in tax-free bonds instead of bank deposits, the entire return is yours alone. Because you don’t have to pay taxes for it.
How high is the risk when investing?
We tell you that tax-free bonds are issued by the government. That is why these bonds are absolutely safe for investments. In such a situation, investing money can give you good returns because it will give you more interest and no taxes on it. Aside from tax-free bonds, however, there are many other ways to get good returns that you don’t have to pay taxes on.
These bonds give you a higher return
If we talk about the bonds with the highest yield among the tax-free bonds, then in the HUDCO N2 series you get 8.2 percent interest. Payment is made in March each year. You’ll earn 7.51 percent interest on the HUDCO N5 Series, paid out in February each year. Likewise, 8.48 percent interest is available for IRFC N9 series and 8.65 percent for IRFC NA series. On the other hand, you get 8.46 percent interest on the RECN6 series and 8.88 percent interest on the RECNF series. In addition, you get 8.75 percent interest on the NHAI N6 series.
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Keywords: Business news in Hindi, earn money, investment and return, investment tips
FIRST RELEASED : July 9, 2023 11:05 AM IST
