How can I buy tax free bonds in India?

Tax-free bonds are issued through a Demat account or in physical mode. You may buy tax-free bonds from the secondary market to achieve short-term financial goals. The returns you make on these bonds are primarily dependent on the purchase price.

Where can I buy NHAI tax free bonds?

These Capital Gain bonds can be purchased either from NHAI/ REC or from authorised brokers of these bonds. There is no online mechanism of purchasing these bonds and a person would be required to physically visit their office and fill in the physical form.

What are the tax free bonds available now?

If you are looking to invest for a lower tenure of under 10 years, you can consider buying bonds of REC (NI series), IREDA (N7 series), NABARD (N2 series), or HUDCO (ND series). These bonds have a remaining tenure of 6-10 years. Here are some of the top-performing Tax Free Bonds you must invest in.

What is PFC tax free bonds?

Tax benefits u/s 10 (15) (iv) (h) of the Income Tax Act, 1961 The Bonds are tax free in nature and the interest on the Bonds will not form part of the total taxable income of Bondholders. PFC provides a comprehensive range of financial products and related advisory and other services.

Which bond is better NHAI or REC?

REC bonds score a bit higher than NHAI bonds. Because on maturity i.e., after 5 years, NHAI bondholders have to apply for surrender of bonds only then the maturity amount is redeemed and paid by cheque or ECS. In the case of REC bonds, it will be automatically redeemed and paid by cheque or ECS.

Is demat account required for NHAI bonds?

Bonds will be automatically redeemed by NHAI on maturity, without the surrender of Bond Certificate(s) and the proceeds would be paid by cheque or NECS/ECS. Demat account is not mandatory, if you don’t have demat a/c, then you will receive physical bond certificate like your Fixed Deposit.

Is PFC bond a good buy?

The issue has 3 investment options with tax free returns upto 8.92\% p.a. The bonds have been rated ‘CRISIL AAA/Stable’ by CRISIL, ‘[ICRA] AAA’ by ICRA, and ‘CARE AAA’ by CARE.

How do you buy PFC bonds?

Attach following document along with the downloaded application form : –

1. PAN Card and Address Proof Photo Copy self-attested by applicant.
2. One Cancelled Cheque copy.
3. Cheque / DD should be drawn in favour of “PFC Capital Gain Bonds”
4. On First come First Serve Basis.