Tax-free bonds are issued by government-backed entities like NHAI, IRFC, PFC, REC, HUDCO, and NABARD. The interest earned on these bonds is completely exempt from income tax under Section 10(15)(iv)(h) of the Income Tax Act. While no new tax-free bonds have been issued since 2016, they are available in the secondary market through stock exchanges and bond platforms. For investors in the 30% tax bracket, a 5% tax-free yield equals approximately 7.14% pre-tax return.
2930 Bonds Found
Sorted by YTM. Not a recommendation.| Issuer | Rating | YTM | Coupon | Maturity | Platforms |
|---|---|---|---|---|---|
| AKARA CAPITAL ADVISORS PRIVATE LIMITED INE08XP07308 | BBB | 15.30% | 9.85% | 8M | 1 |
| AKARA CAPITAL ADVISORS PRIVATE LIMITED INE08XP07316 | BBB | 15.20% | 9.85% | 11M | 1 |
| AKARA CAPITAL ADVISORS PRIVATE LIMITED INE08XP07449 | BBB | 15.20% | 12.50% | 11M | 1 |
| AKARA CAPITAL ADVISORS PRIVATE LIMITED INE08XP07258 | BBB | 15.10% | 10.01% | Matured | 1 |
| AKARA CAPITAL ADVISORS PRIVATE LIMITED INE08XP07266 | BBB | 15.10% | 9.85% | 2M | 1 |
| AKARA CAPITAL ADVISORS PRIVATE LIMITED INE08XP07399 | BBB | 15.10% | 12.00% | 1.1Y | 1 |
| AKARA CAPITAL ADVISORS PRIVATE LIMITED INE08XP07423 | BBB | 15.10% | 12.00% | 1.2Y | 2 |
| AKARA CAPITAL ADVISORS PRIVATE LIMITED INE08XP07431 | BBB | 15.10% | 12.00% | 1.2Y | 2 |
| KINARA CAPITAL PRIVATE LIMITED INE200W08124 | D | 15.00% | 13.40% | 3.8Y | 1 |
| Keertana Finserv Private Limited INE0NES07287 | BBB+ | 13.85% | 11.40% | 1.6Y | 2 |
| KEERTANA FINSERV PRIVATE LIMITED INE0NES07139 | BBB+ | 13.80% | 11.40% | 1.1Y | 1 |
| Keertana Finserv Private Limited INE0NES07220 | BBB+ | 13.75% | — | — | 1 |
| KEERTANA FINSERV PRIVATE LIMITED INE0NES07246 | BBB+ | 13.75% | 11.20% | 1.1Y | 3 |
| Cyqure India Private Limited INE0Z4807015 | BBB- | 13.75% | — | — | 1 |
| Avanti Finance Private Limited INE0BNQ07154 | BBB | 13.70% | — | — | 1 |
| KEERTANA FINSERV PRIVATE LIMITED INE0NES07162 | BBB+ | 13.65% | 11.30% | 12M | 2 |
| KEERTANA FINSERV PRIVATE LIMITED INE0NES07147 | BBB+ | 13.60% | 11.40% | 1.2Y | 1 |
| KEERTANA FINSERV LIMITED INE0NES07188 | BBB+ | 13.60% | 11.20% | 10M | 2 |
| RDC CONCRETEINDIA LIMITED INE076I07020 | BB+ | 13.50% | 12.00% | 2.0Y | 1 |
| RDC CONCRETEINDIA LIMITED INE076I07038 | BB+ | 13.50% | 12.00% | 2.1Y | 1 |
| Indel Money Limited INE0BUS07BL0 | BBB+ | 13.50% | 11.25% | 4M | 2 |
| Keertana Finserv Private Limited INE0NES07154 | BBB+ | 13.50% | 11.30% | 11M | 2 |
| Keertana Finserv Private Limited INE0NES07253 | BBB+ | 13.50% | — | — | 1 |
| KEERTANA FINSERV PRIVATE LIMITED INE0NES07261 | BBB+ | 13.50% | 11.10% | 1.4Y | 1 |
| Akme Fintrade Limited INE916Y07057 | BBB+ | 13.50% | — | — | 1 |
| KEERTANA FINSERV PRIVATE LIMITED INE0NES07097 | BBB | 13.35% | 11.40% | 1M | 1 |
| Indel Money Limited INE0BUS07BO4 | BBB+ | 13.30% | 11.00% | 7M | 1 |
| Indel Money Limited INE0BUS07BQ9 | BBB+ | 13.30% | 11.00% | 9M | 1 |
| Indel Money Limited INE0BUS07BK2 | BBB+ | 13.25% | 11.25% | 1M | 1 |
| Akme Fintrade Limited INE916Y07032 | BBB+ | 13.25% | — | — | 1 |
| Indel Money Limited INE0BUS07BJ4 | BBB+ | 13.20% | 11.00% | Matured | 1 |
| SAMUNNATI FINANCE PRIVATE LIMITED INE0N5S07052 | BBB | 13.20% | 11.00% | 1.0Y | 1 |
| SPANDANA SPHOORTY FINANCIAL LIMITED INE572J07778 | BBB+ | 13.10% | 11.25% | 1.8Y | 1 |
| LUCINA LAND DEVELOPMENT LIMITED INE0JZO07032 | A- | 13.04% | 13.50% | 2.9Y | 1 |
| LUCINA LAND DEVELOPMENT LIMITED INE0JZO07040 | A- | 13.02% | 13.00% | 2.9Y | 1 |
| MIDLAND MICROFIN LIMITED INE884Q07798 | A- | 12.85% | 10.75% | 1.5Y | 2 |
| MIDLAND MICROFIN LIMITED INE884Q07814 | A- | 12.85% | 10.75% | 1.7Y | 2 |
| SATIN CREDITCARE NETWORK LIMITED 2031 INE836B08319 | A | 12.80% | 12.00% | 5.4Y | 2 |
| Kanakadurga Finance Limited INE104W07229 | BBB | 12.80% | 11.55% | 1.7Y | 1 |
| Lendingkart Finance Limited INE090W07675 | BBB+ | 12.70% | 11.33% | Matured | 1 |
| SATIN CREDITCARE NETWORK LIMITED 2031 INE836B08293 | A | 12.63% | 11.50% | 4.9Y | 2 |
| Spandana Sphoorty Financial Limited INE572J07703 | BBB+ | 12.60% | 10.31% | 1M | 1 |
| Spandana Sphoorty Financial Limited INE572J07711 | BBB+ | 12.60% | 10.59% | 4M | 2 |
| VEDIKA CREDIT CAPITAL LIMITED 2028 INE04HY07377 | A | 12.50% | 11.50% | 2.2Y | 2 |
| IFL FINANCE LIMITED INE01XO07025 | BBB | 12.49% | 12.25% | 1.8Y | 1 |
| Ugro Capital Ltd. INE583D08081 | A+ | 12.46% | 11.65% | 5.0Y | 1 |
| EARLYSALARY SERVICES PRIVATE LIMITED INE01YL07342 | A- | 12.45% | 10.90% | 10M | 1 |
| SATIN FINSERV LIMITED INE03K307058 | A- | 12.40% | 10.80% | 7M | 1 |
| KRAZYBEE SERVICES PRIVATE LIMITED INE07HK07791 | A | 12.40% | 10.95% | 5M | 2 |
| MIDLAND MICROFIN LIMITED INE884Q07715 | A- | 12.40% | 8.69% | 4M | 1 |
Frequently Asked Questions
Are tax-free bonds still available in India?
No new tax-free bonds have been issued since 2015-16. However, existing tax-free bonds are actively traded in the secondary market on NSE and BSE. You can buy them through stock brokers or online bond platforms. The availability and pricing depend on market demand.
Who should invest in tax-free bonds?
Tax-free bonds are most beneficial for investors in the highest tax bracket (30%+). For someone in the 30% bracket, a 5% tax-free yield equals about 7.14% pre-tax. For someone in the 20% bracket, the equivalent is 6.25%. If you are in a lower bracket, regular bonds or FDs may offer better post-tax returns.
What is the typical tenure of tax-free bonds?
Tax-free bonds were originally issued with tenures of 10, 15, or 20 years. Since they were issued between 2011-2016, remaining maturities range from roughly 0-10 years in the secondary market. Interest is paid annually.
Explore More
Data is for informational purposes only. BondDekho is not SEBI-registered and does not provide investment advice. Bond yields and ratings are subject to change. Verify details on respective platforms before investing. Sorted by Yield to Maturity. Not a recommendation.