Tax-Free Bonds

Tax-free bonds are issued by the Government to raise long-term funds, usually for a specific purpose. An example of these includes municipal bonds. It is a low-risk investment option that offers a fixed rate of interest. The most attractive benefit is the tax exemption as per Section 10 of the Income Tax Act of India, 1961. It has a long-term maturity of 10 years and more.

Issuer	Coupon rate (Interest rate)	Maturity Date	Yield to Maturity (%)
National Highways Authority of India (NHAI) Tax-Free Bonds	8.75	05-Feb-2029	5.48
National Housing Bank	9.1	16-Nov-2033	5.01
National Thermal Power Corporation (NTPC) Tax-Free Bonds	8.91	16-Dec-2033	5.6
Rural Electrification Corporation (REC) Tax-Free Bonds	8.71	24-Sep-2028	5.49
Housing and Urban Development Corporation (HUDCO) Tax-Free Bonds	7.64	8-Feb-2032	5.7
Indian Railways Finance Corporation (IRFC) Tax-Free Bonds	8.63	26-March-2029	5.11
Power Finance Corporation (PFC) Tax-Free Bonds	8.67	16-Nov-2033	5.2