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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.

No Tax Free Bonds Found

Discover our Curated Packs

MAHINDRA AND MAHINDRA FINANCIAL SERVICES LIMITED

Coupon

8.2500%

Maturity

Mar 2027

Rating

Ind-Ra  AAA

Type of Bond

Secured - Regular Bond/Debenture

Yield

8.1000%

Price

₹ 1,02,164.12

TATA CAPITAL LIMITED

Coupon

8.0980%

Maturity

Jan 2027

Rating

CRISIL  AAA

Type of Bond

Secured - Regular Bond/Debenture

Yield

8.0700%

Price

₹ 1,03,175.07

HDFC BANK LIMITED

Coupon

8.4600%

Maturity

Jun 2026

Rating

ICRA  AAA

Type of Bond

Unsecured - Regular Bond/Debenture

Yield

8.0000%

Price

₹ 1,07,97,465.90

KOTAK MAHINDRA INVESTMENTS LIMITED

Coupon

8.3721%

Maturity

Aug 2027

Rating

ICRA  AAA

Type of Bond

Secured - Regular Bond/Debenture

Yield

8.1500%

Price

₹ 1,01,346.68

NEOGROWTH CREDIT PRIVATE LIMITED

Coupon

12.5500%

Maturity

Aug 2025

Rating

ICRA  BBB+

Type of Bond

Secured - Regular Bond/Debenture

Yield

12.0000%

Price

₹ 1,01,236.52

SATYA MICROCAPITAL LIMITED

Coupon

13.8500%

Maturity

Jul 2029

Rating

CRISIL  BBB+

Type of Bond

Subordinate Debt

Yield

14.7562%

Price

₹ 1,00,265.62

EARLYSALARY SERVICES PRIVATE LIMITED

Coupon

11.7500%

Maturity

Dec 2025

Rating

CARE  BBB+

Type of Bond

Secured - Regular Bond/Debenture

Yield

12.2701%

Price

₹ 1,00,772.60

NEOGROWTH CREDIT PRIVATE LIMITED

Coupon

12.5500%

Maturity

Aug 2025

Rating

ICRA  BBB+

Type of Bond

Secured - Regular Bond/Debenture

Yield

12.0000%

Price

₹ 1,01,236.52

INDIABULLS HOUSING FINANCE LIMITED

Coupon

8.8500%

Maturity

Sep 2026

Rating

CRISIL  AA

Type of Bond

Secured - Regular Bond/Debenture

Yield

11.7500%

Price

₹ 989.99

ESAF SMALL FINANCE BANK LIMITED

Coupon

11.0000%

Maturity

Apr 2030

Rating

CARE  A

Type of Bond

Subordinate Debt Tier 2 - Lower

Yield

11.3500%

Price

₹ 1,00,653.41

KERALA INFRASTRUCTURE INVESTMENT FUND BOARD

Coupon

8.9500%

Maturity

Dec 2031

Rating

ACUITE  AA(CE)

Type of Bond

State Guaranteed Bond (SLU)

Yield

9.2472%

Price

₹ 1,00,684.70

KERALA INFRASTRUCTURE INVESTMENT FUND BOARD

Coupon

8.9500%

Maturity

Dec 2027

Rating

ACUITE  AA(CE)

Type of Bond

State Guaranteed Bond (SLU)

Yield

9.2468%

Price

₹ 1,00,684.70

KERALA INFRASTRUCTURE INVESTMENT FUND BOARD

Coupon

8.9500%

Maturity

Dec 2032

Rating

ACUITE  AA(CE)

Type of Bond

State Guaranteed Bond (SLU)

Yield

9.2465%

Price

₹ 1,00,684.70

KERALA INFRASTRUCTURE INVESTMENT FUND BOARD

Coupon

8.9500%

Maturity

Dec 2030

Rating

ACUITE  AA(CE)

Type of Bond

State Guaranteed Bond (SLU)

Yield

9.2464%

Price

₹ 1,00,684.70

KERALA INFRASTRUCTURE INVESTMENT FUND BOARD

Coupon

8.9500%

Maturity

Dec 2028

Rating

ACUITE  AA(CE)

Type of Bond

State Guaranteed Bond (SLU)

Yield

9.2452%

Price

₹ 1,00,684.70

ESAF SMALL FINANCE BANK LIMITED

Coupon

11.0000%

Maturity

Apr 2030

Rating

CARE  A

Type of Bond

Subordinate Debt Tier 2 - Lower

Yield

11.3500%

Price

₹ 1,00,653.41

AU SMALL FINANCE BANK LIMITED

Coupon

10.7500%

Maturity

Feb 2029

Rating

CARE  A

Type of Bond

Subordinate Debt Tier 2 - Lower

Yield

9.5000%

Price

₹ 1,06,624.52

YES BANK LIMITED

Coupon

9.0000%

Maturity

Mar 2026

Rating

CARE  A

Type of Bond

Subordinate Debt Tier 2

Yield

9.5000%

Price

₹ 9,95,504.78

YES BANK LIMITED

Coupon

9.1500%

Maturity

Jun 2025

Rating

CARE  A

Type of Bond

Subordinate Debt Tier 2

Yield

9.4000%

Price

₹ 10,70,080.00

YES BANK LIMITED

Coupon

8.8500%

Maturity

Feb 2025

Rating

CARE  A

Type of Bond

Unsecured - Regular Bond/Debenture

Yield

9.2500%

Price

₹ 10,08,529.57

NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT

Coupon

7.5700%

Maturity

Mar 2026

Rating

Ind-Ra  AAA

Type of Bond

Unsecured - Regular Bond/Debenture

Yield

7.5577%

Price

₹ 1,00,642.93

REC LIMITED

Coupon

7.6000%

Maturity

Feb 2026

Rating

CRISIL  AAA

Type of Bond

Unsecured - Regular Bond/Debenture

Yield

7.5500%

Price

₹ 1,01,093.22

RURAL ELECTRIFICATION CORPORATION LIMITED

Coupon

7.5600%

Maturity

Jun 2026

Rating

CRISIL  AAA

Type of Bond

Unsecured - Regular Bond/Debenture

Yield

7.5271%

Price

₹ 1,06,089.42

POWER FINANCE CORPORATION LIMITED

Coupon

7.4200%

Maturity

Sep 2032

Rating

ICRA  AAA

Type of Bond

Unsecured - Regular Bond/Debenture

Yield

7.3700%

Price

₹ 10,47,484.02

POWER FINANCE CORPORATION LIMITED

Coupon

7.5500%

Maturity

Aug 2038

Rating

ICRA  AAA

Type of Bond

Secured - Regular Bond/Debenture

Yield

7.3600%

Price

₹ 1,069.53

HARYANA

Coupon

6.8600%

Maturity

Nov 2026

Rating

Sovereign

Type of Bond

State Development Loan

Yield

7.4000%

Price

₹ 101.52

SATYA MICROCAPITAL LIMITED

Coupon

13.8500%

Maturity

Jul 2029

Rating

CRISIL  BBB+

Type of Bond

Subordinate Debt

Yield

14.7562%

Price

₹ 1,00,265.62

NEOGROWTH CREDIT PRIVATE LIMITED

Coupon

12.5500%

Maturity

Aug 2025

Rating

ICRA  BBB+

Type of Bond

Secured - Regular Bond/Debenture

Yield

12.0000%

Price

₹ 1,01,236.52

SPANDANA SPHOORTY FINANCIAL LIMITED

Coupon

10.7500%

Maturity

Mar 2025

Rating

Ind-Ra  A

Type of Bond

Secured - Regular Bond/Debenture

Yield

11.2957%

Price

₹ 1,00,382.88

SPANDANA SPHOORTY FINANCIAL LIMITED

Coupon

10.7500%

Maturity

Sep 2025

Rating

Ind-Ra  A

Type of Bond

Secured - Regular Bond/Debenture

Yield

11.2949%

Price

₹ 1,00,382.88

MAS FINANCIAL SERVICES LIMITED

Coupon

10.7500%

Maturity

Jul 2029

Rating

CARE  AA-

Type of Bond

Subordinate Debt

Yield

11.2900%

Price

₹ 1,00,559.59

Note: Pursuant to the provisions of Section 193 of Income Tax Act, 1961, as amended, with effect from, 1st April 2023, TDS will be deducted @ 10% on any interest payable on any security issued by a company (i.e. securities other than securities issued by the Central Government or a State Government). The listing of products above should not be considered an endorsement or recommendation to invest. Please use your own discretion before you transact. The listed products and their price or yield are subject to availability and market cutoff times.

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.