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Yield (% Return)

This is indicative % returns on your bond investments

Balance tenure

Time period after which your initial investment is paid back

Interest payment frequency

Time period between two interest payments on your bond

Credit rating

This shows the safety of the issuer. Higher the rating - safer the bond

Tax Free Bonds

Tax Free Bonds are a great investment for investors who are looking for relatively safe long term investment options that help earn fixed and regular higher income as well as save taxes on such interest income.

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Yield (% Return)

This is indicative % returns on your bond investments

Balance tenure

Time period after which your initial investment is paid back

Interest payment frequency

Time period between two interest payments on your bond

Credit rating

This shows the safety of the issuer. Higher the rating - safer the bond

Curated Pack : Tax Free Bonds


National Highways Authority Of India

Coupon

7.3900%

Maturity

Jan 2026

Rating

Ind-Ra  AAA

Type of Bond

Tax-free Bond

Yield

5.4000%

Price

₹ 1,026.17

Rural Electrification Corporation Limited

Coupon

8.8800%

Maturity

Mar 2029

Rating

CARE  AAA

Type of Bond

Tax-free Bond

Yield

5.2200%

Price

₹ 1,162.60

Indian Railway Finance Corporation Limited

Coupon

8.8800%

Maturity

Mar 2029

Rating

ICRA  AAA

Type of Bond

Tax-free Bond

Yield

5.2200%

Price

₹ 1,131.01

India Infrastructure Finance Company Limited

Coupon

8.8000%

Maturity

Mar 2029

Rating

ICRA  AAA

Type of Bond

Tax-free Bond

Yield

5.2200%

Price

₹ 1,132.56

Bond Name Coupon Maturity Rating Interest Payment Yield Price Action

NATIONAL HIGHWAYS AUTHORITY OF INDIA

7.3900

Jan 2026

Ind-Ra AAA

Annual

5.4000%

₹ 1,026.17

Read More

RURAL ELECTRIFICATION CORPORATION LIMITED

8.8800

Mar 2029

CARE AAA

Annual

5.2200%

₹ 1,162.60

Read More

INDIAN RAILWAY FINANCE CORPORATION LIMITED

8.8800

Mar 2029

ICRA AAA

Annual

5.2200%

₹ 1,131.01

Read More

INDIA INFRASTRUCTURE FINANCE COMPANY LIMITED

8.8000

Mar 2029

ICRA AAA

Annual

5.2200%

₹ 1,132.56

Read More

Note: Pursuant to the provisions of Section 193 of the Income Tax Act, 1961, as amended, effective from 1st April 2023, TDS will be deducted at the rate of 10% (or such other rates as may be notified from time to time) on any interest payable on any security issued by a company other than securities issued by the Central Government or a State Government. The listing of products above: (a) should not be considered an advertisement, endorsement, or recommendation to invest. Please use your own discretion before you transact. (b) is in compliance with regulatory framework as applicable for Online Bond Platform Provider (c) at their given price or yield are subject to availability and market cut-off timings.

Discover our Curated Packs

HINDUJA LEYLAND FINANCE LIMITED

Coupon

9.2500%

Maturity

Oct 2030

Rating

CRISIL  AA+

Type of Bond

Subordinate Debt Tier 2

Yield

9.2380%

Price

₹ 1,03,142.47

BELSTAR MICROFINANCE LIMITED

Coupon

9.1500%

Maturity

Jun 2027

Rating

CRISIL  AA

Type of Bond

Senior Unsecured - Regular Bond/Debenture

Yield

9.5500%

Price

₹ 1,00,237.83

MANBA FINANCE LIMITED

Coupon

11.3000%

Maturity

Jun 2027

Rating

CARE  BBB+

Type of Bond

Secured - Regular Bond/Debenture

Yield

11.7500%

Price

₹ 10,014.26

THE ANDHRA PRADESH MINERAL DEVELOPMENT CORPORATION LIMITED

Coupon

9.3000%

Maturity

May 2034

Rating

Ind-Ra  AA(CE)

Type of Bond

State Guaranteed Bond (SLU)

Yield

9.2500%

Price

₹ 1,03,425.99

THE ANDHRA PRADESH MINERAL DEVELOPMENT CORPORATION LIMITED

Coupon

9.3000%

Maturity

May 2033

Rating

Ind-Ra  AA(CE)

Type of Bond

State Guaranteed Bond (SLU)

Yield

9.2500%

Price

₹ 1,03,252.99

INDIGRID INFRASTRUCTURE TRUST

Coupon

8.2000%

Maturity

May 2031

Rating

CRISIL  AAA

Type of Bond

Secured - Regular Bond/Debenture

Yield

7.8000%

Price

₹ 1,030.44

MANBA FINANCE LIMITED

Coupon

11.3000%

Maturity

Jun 2027

Rating

CARE  BBB+

Type of Bond

Secured - Regular Bond/Debenture

Yield

11.7500%

Price

₹ 10,014.26

IKF FINANCE LIMITED

Coupon

9.9000%

Maturity

Dec 2027

Rating

CARE  A+

Type of Bond

Secured - Regular Bond/Debenture

Yield

9.9000%

Price

₹ 83,741.80

ADANI ENTERPRISES LIMITED

Coupon

9.6500%

Maturity

Sep 2027

Rating

CARE  AA-

Type of Bond

Secured - Regular Bond/Debenture

Yield

9.5000%

Price

₹ 1,079.62

KERALA INFRASTRUCTURE INVESTMENT FUND BOARD

Coupon

9.4200%

Maturity

Dec 2031

Rating

Ind-Ra  AA(CE)

Type of Bond

State Guaranteed Bond (SLU)

Yield

9.8232%

Price

₹ 99,751.62

KERALA INFRASTRUCTURE INVESTMENT FUND BOARD

Coupon

9.4200%

Maturity

Dec 2031

Rating

Ind-Ra  AA(CE)

Type of Bond

State Guaranteed Bond (SLU)

Yield

9.8232%

Price

₹ 99,751.62

KERALA INFRASTRUCTURE INVESTMENT FUND BOARD

Coupon

9.4200%

Maturity

Dec 2030

Rating

Ind-Ra  AA(CE)

Type of Bond

State Guaranteed Bond (SLU)

Yield

9.8327%

Price

₹ 99,751.62

U.P. POWER CORPORATION LIMITED

Coupon

9.7000%

Maturity

Mar 2028

Rating

Ind-Ra  A+(CE)

Type of Bond

State Guaranteed Bond (SLU)

Yield

8.5700%

Price

₹ 10,30,172.51

THE ANDHRA PRADESH MINERAL DEVELOPMENT CORPORATION LIMITED

Coupon

9.3000%

Maturity

May 2033

Rating

Ind-Ra  AA(CE)

Type of Bond

State Guaranteed Bond (SLU)

Yield

9.2500%

Price

₹ 1,03,252.99

THE ANDHRA PRADESH MINERAL DEVELOPMENT CORPORATION LIMITED

Coupon

9.3000%

Maturity

May 2034

Rating

Ind-Ra  AA(CE)

Type of Bond

State Guaranteed Bond (SLU)

Yield

9.2500%

Price

₹ 1,03,425.99

MANBA FINANCE LIMITED

Coupon

11.3000%

Maturity

Jun 2027

Rating

CARE  BBB+

Type of Bond

Secured - Regular Bond/Debenture

Yield

11.7500%

Price

₹ 10,014.26

GOVERNMENT OF INDIA

Coupon

8.2800%

Maturity

Feb 2032

Rating

Sovereign

Type of Bond

Central Government Securities

Yield

6.2200%

Price

₹ 114.18

ADANI ENTERPRISES LIMITED

Coupon

9.6500%

Maturity

Sep 2027

Rating

CARE  AA-

Type of Bond

Secured - Regular Bond/Debenture

Yield

9.5000%

Price

₹ 1,079.62

GOVERNMENT OF INDIA

Coupon

182d Tbill 04 Sep 2025

Maturity

Sep 2025

Rating

Sovereign

Type of Bond

Central Government Securities

Yield

5.5500%

Price

₹ 99.04

GOVERNMENT OF INDIA

Coupon

182d Tbill 07 Aug 2025

Maturity

Aug 2025

Rating

Sovereign

Type of Bond

Central Government Securities

Yield

5.5500%

Price

₹ 99.46

INDIGRID INFRASTRUCTURE TRUST

Coupon

8.2000%

Maturity

May 2031

Rating

CRISIL  AAA

Type of Bond

Secured - Regular Bond/Debenture

Yield

7.8000%

Price

₹ 1,030.44

MANBA FINANCE LIMITED

Coupon

11.3000%

Maturity

Jun 2027

Rating

CARE  BBB+

Type of Bond

Secured - Regular Bond/Debenture

Yield

11.7500%

Price

₹ 10,014.26

IKF FINANCE LIMITED

Coupon

9.9000%

Maturity

Dec 2027

Rating

CARE  A+

Type of Bond

Secured - Regular Bond/Debenture

Yield

9.9000%

Price

₹ 83,741.80

ADANI ENTERPRISES LIMITED

Coupon

9.6500%

Maturity

Sep 2027

Rating

CARE  AA-

Type of Bond

Secured - Regular Bond/Debenture

Yield

9.5000%

Price

₹ 1,079.62

KRAZYBEE SERVICES PRIVATE LIMITED

Coupon

10.3000%

Maturity

Jun 2026

Rating

CRISIL  A-

Type of Bond

Secured - Regular Bond/Debenture

Yield

11.6000%

Price

₹ 66,158.94

GOVERNMENT OF INDIA

Coupon

8.2800%

Maturity

Feb 2032

Rating

Sovereign

Type of Bond

Central Government Securities

Yield

6.2200%

Price

₹ 114.18

GOVERNMENT OF INDIA

Coupon

182d Tbill 04 Sep 2025

Maturity

Sep 2025

Rating

Sovereign

Type of Bond

Central Government Securities

Yield

5.5500%

Price

₹ 99.04

GOVERNMENT OF INDIA

Coupon

182d Tbill 07 Aug 2025

Maturity

Aug 2025

Rating

Sovereign

Type of Bond

Central Government Securities

Yield

5.5500%

Price

₹ 99.46

GOVERNMENT OF INDIA

Coupon

6.0100%

Maturity

Mar 2028

Rating

Sovereign

Type of Bond

Central Government Securities

Yield

5.7000%

Price

₹ 102.38

GOVERNMENT OF INDIA

Coupon

364d Tbill 30 Oct 2025

Maturity

Oct 2025

Rating

Sovereign

Type of Bond

Central Government Securities

Yield

5.6000%

Price

₹ 98.19

MANBA FINANCE LIMITED

Coupon

11.3000%

Maturity

Jun 2027

Rating

CARE  BBB+

Type of Bond

Secured - Regular Bond/Debenture

Yield

11.7500%

Price

₹ 10,014.26

KRAZYBEE SERVICES PRIVATE LIMITED

Coupon

10.3000%

Maturity

Jun 2026

Rating

CRISIL  A-

Type of Bond

Secured - Regular Bond/Debenture

Yield

11.6000%

Price

₹ 66,158.94

AYE FINANCE LIMITED

Coupon

10.3500%

Maturity

Dec 2027

Rating

Ind-Ra  A

Type of Bond

Secured - Regular Bond/Debenture

Yield

11.1000%

Price

₹ 99,857.97

AU SMALL FINANCE BANK LIMITED

Coupon

10.7500%

Maturity

Jan 2029

Rating

ICRA  AA

Type of Bond

Subordinate Debt Tier 2 - Lower

Yield

8.6500%

Price

₹ 1,07,257.24

KRAZYBEE SERVICES PRIVATE LIMITED

Coupon

10.6500%

Maturity

Nov 2026

Rating

CARE  A-

Type of Bond

Secured - Regular Bond/Debenture

Yield

11.6000%

Price

₹ 99,456.69

NATIONAL HIGHWAYS AUTHORITY OF INDIA

Coupon

7.3900%

Maturity

Jan 2026

Rating

Ind-Ra  AAA

Type of Bond

Tax-free Bond

Yield

5.4000%

Price

₹ 1,026.17

RURAL ELECTRIFICATION CORPORATION LIMITED

Coupon

8.8800%

Maturity

Mar 2029

Rating

CARE  AAA

Type of Bond

Tax-free Bond

Yield

5.2200%

Price

₹ 1,162.60

INDIAN RAILWAY FINANCE CORPORATION LIMITED

Coupon

8.8800%

Maturity

Mar 2029

Rating

ICRA  AAA

Type of Bond

Tax-free Bond

Yield

5.2200%

Price

₹ 1,131.01

INDIA INFRASTRUCTURE FINANCE COMPANY LIMITED

Coupon

8.8000%

Maturity

Mar 2029

Rating

ICRA  AAA

Type of Bond

Tax-free Bond

Yield

5.2200%

Price

₹ 1,132.56

AU SMALL FINANCE BANK LIMITED

Coupon

10.7500%

Maturity

Jan 2029

Rating

ICRA  AA

Type of Bond

Subordinate Debt Tier 2 - Lower

Yield

8.6500%

Price

₹ 1,07,257.24

ESAF SMALL FINANCE BANK LIMITED

Coupon

11.0000%

Maturity

Apr 2030

Rating

CARE  A

Type of Bond

Subordinate Debt Tier 2 - Lower

Yield

11.2000%

Price

₹ 1,03,412.95

AU SMALL FINANCE BANK LIMITED

Coupon

10.7500%

Maturity

Feb 2029

Rating

ICRA  AA

Type of Bond

Subordinate Debt Tier 2 - Lower

Yield

8.6500%

Price

₹ 1,07,312.44

NATIONAL HIGHWAYS AUTHORITY OF INDIA

Coupon

7.3900%

Maturity

Jan 2026

Rating

Ind-Ra  AAA

Type of Bond

Tax-free Bond

Yield

5.4000%

Price

₹ 1,026.17

POWER FINANCE CORPORATION LIMITED

Coupon

7.5000%

Maturity

Aug 2026

Rating

CARE  AAA

Type of Bond

Secured - Regular Bond/Debenture

Yield

6.7500%

Price

₹ 1,076.23

RURAL ELECTRIFICATION CORPORATION LIMITED

Coupon

7.5600%

Maturity

Jun 2026

Rating

CARE  AAA

Type of Bond

Unsecured - Regular Bond/Debenture

Yield

6.7500%

Price

₹ 1,00,793.72

RURAL ELECTRIFICATION CORPORATION LIMITED

Coupon

8.8800%

Maturity

Mar 2029

Rating

CARE  AAA

Type of Bond

Tax-free Bond

Yield

5.2200%

Price

₹ 1,162.60

HINDUSTAN PETROLEUM CORPORATION LIMITED

Coupon

7.7400%

Maturity

Mar 2028

Rating

CRISIL  AAA

Type of Bond

Unsecured - Regular Bond/Debenture

Yield

6.7000%

Price

₹ 1,04,979.67

REC LIMITED

Coupon

Zero Coupon

Maturity

Nov 2034

Rating

CARE  AAA

Type of Bond

Deep Discount/Zero Coupon Bond

Yield

6.4500%

Price

₹ 55,759.40

Note: Pursuant to the provisions of Section 193 of the Income Tax Act, 1961, as amended, effective from 1st April 2023, TDS will be deducted at the rate of 10% (or such other rates as may be notified from time to time) on any interest payable on any security issued by a company other than securities issued by the Central Government or a State Government. The listing of products above: (a) should not be considered an advertisement, endorsement, or recommendation to invest. Please use your own discretion before you transact. (b) is in compliance with regulatory framework as applicable for Online Bond Platform Provider (c) at their given price or yield are subject to availability and market cut-off timings.

Frequently Asked Questions

How do you redeem Tax Free Bonds?

The steps to redeem Tax Free Bonds is quite simple the bond can be traded in the secondary market/stock exchanges. Investors looking to exit their investments can sell their bonds through the secondary markets. If held till maturity, the issuer repays the principal at redemption
It’s important to note that any profits made on selling these bonds are taxable. If you sell these bonds within a year of holding them the profits will be taxable as per the income tax bracket you reside in. In case investors sell the bonds after 1 year the profits will attract long term capital gains tax at 10% without indexation.

Who are the issuers of Tax Free Bonds?

Issuers of Tax Free Bonds are usually entities that have been incorporated by the government or government enterprises. These entities are established to work on projects that will help build the nation and benefit the people and could be associated with infrastructure, electrification program, housing development etc. These companies usually have their stakes owned directly by the president of India. A few examples of tax free bond issuers are as follows: National Highway Authority of India (NHAI), Power finance Corporation Limited (PFC), Indian Infrastructure Finance Company Limited (IIFCL), Housing and Urban Development Corporation Limited (HUDCO)

Are Tax Free Bonds a safe investment option?

Bonds in general are a relatively safer investment option in comparison to other choices like stocks etc. To top that since Tax Free Bonds are issued by government enterprises, it makes these investments have quite a low probability to default.. As a result, Tax Free Bonds can therefore be considered a relatively safer investment option for investors who are looking for long term fixed income investment option.

How to invest in Tax Free Bonds?

Tax Free Bonds can be purchased from the primary market where investors buy these bonds from the entity directly, where it is issued for the first time. The other way to invest in Tax Free Bonds is through Secondary markets. Since Tax Free Bonds have not been issued since 2016 investors can look to invest through secondary markets. Browse through Tax Free Bonds online on IndiaBonds and get access to detailed bond information.